Constitutional Validity of GST Arrest Powers Under Section 69 Upheld Following Supreme Court Precedent
Issue
Whether Section 69 of the Central Goods and Services Tax (CGST) Act, 2017, which empowers designated GST officials to arrest individuals suspected of specified tax offenses, is constitutionally valid.
Facts
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The petitioner filed a writ petition before the Supreme Court of India primarily challenging the constitutional validity of Section 69 of the CGST Act, 2017.
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Section 69 gives authorized GST officers the statutory power to arrest an individual if there is reason to believe they have committed offenses punishable under Section 132 of the Act.
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Prior to the disposal of this petition, a three-judge Bench of the Supreme Court had already adjudicated upon and decided the identical legal challenge in the case of Radhika Agarwal v. Union of India.
Decision
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In favor of Revenue: Held that the constitutional and legal validity of Section 69 of the CGST Act, 2017, has already been firmly upheld by a three-judge Bench of this Court in Radhika Agarwal v. Union of India 95 GSTL 225 (SC) / (2025) 6 SCC 545.
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In favor of Revenue: Held that the current writ petition challenging the same provision is disposed of entirely in terms of the binding ruling in the Radhika Agarwal judgment.
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In favor of Revenue: Held that any interim protection or stay order previously granted to the petitioner in this matter stands vacated.
Key Takeaways
Settled Law on GST Arrest Powers: The administrative power of GST officials to arrest individuals under Section 69 is constitutionally valid and is no longer an open question, having been definitively affirmed by a three-judge Bench of the Supreme Court.
Binding Nature of Precedent: Subsequent challenges to the statutory validity of Section 69 cannot be relitigated and will be summarily disposed of in accordance with the established apex court precedent.