Jalandhar businessman freed; HC summons CGST officials for explanation

High Court flags procedural lapses in tax arrest of Jalandhar trader

The Punjab and Haryana High Court has ordered the immediate release of a Jalandhar businessman and sought an explanation from two officers of the Central Goods and Services Tax (CGST) commissionerate, Ludhiana, after finding prima facie irregularities in the manner of his arrest, court records show.

The bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor impleaded the principal commissioner, CGST, Sugrive Meena, and senior intelligence officer (SIO), Mohmad Saleem, as respondents and directed them to explain why disciplinary proceedings should not be initiated against them. Meena authorised the arrest and Saleem effected it, according to the court order.

• Petitioner: Jalandhar businessman Kuldeep Goyal.
• Counsel: Senior advocate NS Boparai appeared for Goyal.
• Allegation: GST evasion proceedings led to arrest despite a high court direction.

The court noted that its earlier order — directing Goyal to appear before tax authorities — was not respected by the officers. The petitioner, carrying the court direction, appeared before the authorities at around 11 am on September 23, the lawyer said. Despite this, an arrest order was passed at noon and Goyal was shown as arrested the next day at 4:45 am, according to the petition.

"…the facts which have emerged before the court would reveal that the respondent authorities considered the order of the court as a charter to proceed in the manner they deemed appropriate. The authorities have shown scant regard for the orders passed by the court as would be clearly reflected from the … (proceedings of the case)," the bench observed.

The bench said the conduct of the officers indicated that they should have at least apprised the court of their position on the next hearing date, mentioning September 29, when the matter was to be taken up again. The judges observed that the authorities appeared to treat the high court order as if it permitted them to act as they saw fit, language that underlined the court's displeasure with the sequence of events.

Local traders, legal process and consequences

The case raises questions over procedural compliance by tax officials in Ludhiana while dealing with GST-related enquiries involving Jalandhar traders. The high court's summons seeks to examine whether statutory safeguards and court directions were observed before an arrest was authorised.

Under GST law and general legal practice, an individual who obtains a court direction to appear is expected to be afforded the protection of that order, unless the authority can demonstrably show urgent grounds for immediate action. The bench's direction to implead the two officers suggests the court will scrutinise the justification provided for bypassing or disregarding its earlier order.

The matter now requires the two named officers to file an explanation before the court. Depending on the submissions, the bench may consider initiating disciplinary proceedings against them and examine the legality of the arrest and the period of confinement cited in the petition.

The development is likely to attract close attention among Jalandhar's business community, where concerns about enforcement practices and due process are acute, particularly in tax and regulatory matters. Traders and accountants said adherence to lawful procedure and timely communication with courts and counsel are essential to avoid escalation in such disputes.

The high court will next consider the explanations offered by the principal commissioner and the senior intelligence officer, and decide on any further remedies or disciplinary measures. In the meantime, the court's immediate order for the businessman's release provides short-term relief for the individual involved and underscores judicial oversight of administrative action in tax enforcement.