Vishal Chauhan Vs Haryana State GST (Intelligence Unit) through Excise Taxation Officer-cum-Proper Officer (Punjab And Haryana High Court)
Without determination of Tax u/s 73/74 of GST provision, arrest cannot be made u/s 69 of CGST act-Punjab & Haryana High Court
Summary: In the case of Vishal Chauhan vs. Haryana State GST (Intelligence Unit), the Punjab and Haryana High Court determined that arrest under Section 69 of the CGST Act cannot occur without a prior tax determination under Sections 73/74 of the GST Act. Vishal Chauhan, the proprietor of M/s Jai Shree Balaji Traders, faced arrest for alleged tax evasion and wrongful Input Tax Credit (ITC) claims. The court ruled that criminal prosecution and arrest require a formal determination of tax liability, emphasizing that arrests for GST violations are invalid if based solely on suspicion and without assessing the actual tax evaded. The petitioner was granted bail with conditions, including executing personal bonds and surrendering his passport. This ruling underscores that the adjudication of tax liability must precede criminal actions under GST regulations.
In recent case of Vishal Chauhan Versus Haryana State GST (Intelligence Unit) (CRM-M- 37860) Punjab & Haryana High Court held that, Without determination of Tax u/s 73/74 of GST provision, arrest cannot be made u/s 69 of CGST act.
