The Supreme Court upheld that while arrest provisions are valid, strict safeguards must be followed to prevent arbitrary arrests.

Key Rulings by the Supreme Court

Arrest Provisions Under GST and Customs Act are Constitutional

• The Supreme Court ruled that Parliament has the authority under Article 246-A of the Constitution to legislate on GST.
• It also has the power to enact provisions to penalize and prevent tax evasion through arrests and penalties.

Customs and GST Officers Cannot Arbitrarily Arrest Individuals

• Arrests must follow strict legal pre-conditions to prevent misuse of power.
• The Supreme Court extended safeguards against arbitrary arrests, similar to those under the Prevention of Money Laundering Act (PMLA), 2002.

Pre-conditions for Arrest Under GST and Customs Acts

• Written Grounds of Arrest: Officers must document and provide the exact reasons for the arrest to the individual.
• Identification of Officers: Arresting officers must have clear, legible identification for transparency.
• Informing Family or Friends: The arrestee’s family or authorized person must be informed immediately.
• Right to Legal Representation: The arrested person has the right to an advocate, who must be present at a visual distance during questioning.
• Judicial Oversight: The Magistrate must verify whether all legal safeguards were followed before approving further detention.

Customs Officers Must Maintain Detailed Records

Officers making arrests must keep detailed records, including:

• Informant’s Name
• Accused’s Name
• Nature of the Offense
• Details of Seizure and Recorded Statements

Difference Between Police and Customs/GST Officers in Arrests

• Police Officers (Section 41 of CrPC): Can arrest based on suspicion.
• Customs & GST Officers: Can only arrest if they have “reason to believe” that an offense has been committed.

Additional Legal Protections Introduced by SC

Anticipatory Bail Available in GST and Customs Cases

• The Supreme Court reaffirmed that individuals fearing arrest under GST and Customs laws can seek anticipatory bail.
• Even if no FIR is filed, courts can grant anticipatory bail to prevent wrongful arrests.
  • The ruling overruled previous judgments, such as the MakeMyTrip case, which restricted anticipatory bail in GST-related arrests.

Protection Against Forced Tax Payments Under Threat of Arrest

• The court acknowledged that individuals are sometimes coerced into making tax payments under the threat of arrest, even when there is no formal assessment of tax liability.
• The Supreme Court ruled that such practices are unconstitutional and violate the rule of law.

Fundamental Right to Life and Liberty (Article 21) 

• The Supreme Court emphasized that Article 21 of the Constitution guarantees protection against wrongful arrests.
• Individuals have the right to seek judicial protection if arrested under arbitrary or coercive circumstances.