Section 69 of the CGST Act, 2017 — Arrest –-- The Petitioner challenged the penal provisions under Section 69 of the Act, in relation to the directors/employees /agents. Further, prayed for directions to the respondents not to cause the arrest of any of the directors/employees/agents. The Petitioners have stated that they have been cooperating with the investigation. The court on 04.03.2022 has directed that petitioners should appear before respondent No.4 on 08.03.2022. It was further directed that since it was hearing the matter no coercive steps should be taken by the respondents. The petitioners have deposited Rs.4.10 crores as against the allegation of GST evasion to the tune of Rs.9.00 crores, which shows the bona fides of the petitioners. The court observed that the possibility of the use of violence by respondent Nos.5 to 9 against petitioner Nos.2 to 4 and the other employees of petitioner No.1 cannot be entirely ruled out. The court on 06.11.2020 issued directions to the respondents that they shall not use any acts of violence or torture against petitioner Nos.2 to 4; any interrogation of petitioner Nos.2 to 4 or their employees shall be between 10:30 a.m. and 05:00 p.m. on week days in the visible range of an Advocate. The court observed that the respondents submitted that there is no question of causing arrest of the petitioners since respondents are primarily concerned with recovery of revenue. Till date petitioners have paid Rs.4.10 crores though not admitting any GST evasion.

Held that:- The Hon’ble High Court directed that the interim order passed by this Court on 04.03.2022 that no coercive steps should be taken by the respondents in the course of investigation shall continue till conclusion of the investigation.