High Court Dismisses Compensation Claim in GST Arrest Case -- Petitioner's Allegations of Illegal Detention Rejected -- Proper Procedure Followed Under CGST Act

Sub Category: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The petitioner, filed a criminal writ petition seeking compensation of Rs. 10,00,000/- for alleged illegal arrest and detention by GST authorities -- He claimed he was taken into custody on 17.06.2025 without proper summons and illegally detained until his formal arrest on 21.06.2025 -- The respondents argued the petitioner was called as a witness under proper summons under Section 70 of the CGST Act from 17.06.2025 to 20.06.2025 and was only arrested on 21.06.2025 after ascertaining charges -- The Court examined the chronology of events and found the petitioner was with authorities voluntarily for recording statements -- The Court held there was no illegal detention and the arrest procedure under Section 69 of the CGST Act was properly followed -- The Court rejected the petitioner's argument that 7 days notice was required for summons under Section 70 of the CGST Act -- The petition was dismissed as the petitioner failed to substantiate claims of illegal detention or constitutional violations

Headnote

The High Court of Judicature at Bombay dismissed a criminal writ petition seeking compensation for alleged illegal arrest -- The petitioner claimed he was illegally detained from 17.06.2025 to 20.06.2025 before formal arrest on 21.06.2025 -- The Court held that the petitioner was called under proper summons under Section 70 of the Central Goods and Services Tax Act, 2017 (CGST Act) for recording statements as a witness -- The Court found no violation of constitutional rights under Article 21 or Article 22 of the Constitution of India -- The Court rejected the argument that 7 days notice was required for summons under Section 70 of the CGST Act -- The Court found the arrest on 21.06.2025 was proper under Section 69 of the CGST Act -- The petitioner's claims of fabricated documents and illegal detention were not substantiated -- The petition was dismissed with no order as to costs

Issue of Consideration: Whether the petitioner was entitled to compensation of Rs. 10,00,000/- for alleged illegal arrest and detention by GST authorities

Final Decision

The High Court dismissed the criminal writ petition -- The Court held the petitioner was not entitled to compensation of Rs. 10,00,000/- -- The Court found no illegal detention or violation of constitutional rights -- The Court rejected the argument that 7 days notice was required for summons under Section 70 of the CGST Act -- No order as to costs

2026 LawText (BOM) (02) 39

Criminal Writ Petition No. 885 of 2025

2026-02-05

Sandipkumar C. More J. , Y.G. Khobragade J.

2026:BHC-AUG:5423-DB

Mr. R.F. Totala i/b Mr. Vedant Kabra for petitioner, Mr. A.G. Talhar a/w Mr. Pratik Bothari and Ms. Nandini Chittal for respondent Nos.1 to 4, Mr. S.R. Wakale for respondent No.5

Kanhaiya Nilambar Jha

Union of India, Principal Commissioner Mr. Pradip Gurumurthy, Additional Commissioner (Preventive) Mr. Rajkumar Kendre, Superintendent (Preventive) Mr. B.S. Nade, State of Maharashtra

Nature of Litigation: Criminal writ petition seeking compensation for alleged illegal arrest and detention

Remedy Sought

Petitioner sought compensation of Rs. 10,00,000/- for alleged illegal arrest and detention by GST authorities

Filing Reason

Petitioner claimed he was illegally detained from 17.06.2025 to 20.06.2025 before formal arrest on 21.06.2025

Previous Decisions

Bail application rejected by Magistrate on 23.06.2025 -- Sessions Judge granted bail after High Court direction -- Petitioner did not press prayers regarding declaring arrest null and void and quashing magisterial custody order

Issues

Whether the petitioner's detention from 17.06.2025 to 20.06.2025 constituted illegal detention Whether the summons issued under Section 70 of the CGST Act required 7 days notice Whether the petitioner was entitled to compensation for alleged violation of constitutional rights under Article 21 and Article 22

Submissions/Arguments

Petitioner argued summons were fabricated and issued without jurisdiction -- Petitioner claimed 7 days notice was required for summons under Section 70 of CGST Act -- Petitioner alleged violation of Article 21 and Article 22 of Constitution -- Respondents argued petitioner was called as witness under proper summons -- Respondents contended petitioner was with authorities voluntarily for recording statements -- Respondents stated arrest was made only on 21.06.2025 after ascertaining charges

Ratio Decidendi

Summons under Section 70 of the CGST Act do not require 7 days notice as argued by the petitioner -- The petitioner was with authorities voluntarily for recording statements as a witness from 17.06.2025 to 20.06.2025 -- The arrest on 21.06.2025 was proper under Section 69 of the CGST Act -- No violation of Article 21 or Article 22 of the Constitution was established -- Claims of fabricated documents and illegal detention were not substantiated

Judgment Excerpts

The petitioner was in fact called as a witness to record his statements under proper summons under Section 70 of the CGST Act, which does not say anything about 7 days notice in advance From 17.06.2025 to 20.06.2025, the petitioner was with the respondents voluntarily and under proper summons for recording statement Only on 21.06.2025, after ascertaining the charges against the petitioner, he was arrested at Nanded and produced before the Magistrate on the same day

Procedural History

Petitioner taken into custody on 17.06.2025 -- Formal arrest on 21.06.2025 under Section 69 of CGST Act -- Case filed before Judicial Magistrate (First Class), Nanded -- Magistrate remanded petitioner in M.C.R. till 03.07.2025 -- Bail application rejected by Magistrate on 23.06.2025 -- Sessions Judge granted bail after High Court direction -- Writ petition filed seeking compensation -- Hearing on 19.12.2025 -- Judgment pronounced on 05.02.2026

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