Rajesh Gandhi Vs Union of India (Telangana High Court)
Summary: Telangana High Court disposed of four connected criminal petitions filed by Rajesh Gandhi, Director of the petitioner companies, challenging proceedings arising from summons/notices issued under Section 70 of the CGST Act, 2017. The petitioners alleged that on 07.06.2024 the department visited their premises, seized records, computers and cash of Rs.83,85,860, and thereafter required production of invoices and appearance before the authorities. Their principal contention was that since offences under Section 132 of the CGST Act carry maximum imprisonment of five years, notice under Section 41A CrPC was mandatory before arrest under Section 69.
The Court, relying particularly on the Supreme Court decision in State of Gujarat v. Choodamani Parmeshwaran Iyer and the Kerala High Court ruling in Subair T.B. v. State of Kerala, rejected the contention that Section 41A notice itself must necessarily be issued to a person alleged to have committed a CGST offence. It held that the safeguards provided under Section 41A are nevertheless required to be kept in mind if a person is arrested under Section 69 of the CGST Act. The Court also held that the interim protection referred to in Radhika Agarwal v. Union of India applied to the persons protected in that proceeding and did not establish the proposition urged by the petitioners.
