The Supreme Court in Radhika Agarwal v. Union of India (2025 SC) ruled that the rights of arrested persons under BNSS 2023 apply to GST and Customs Act arrests. The judgment also confirms that anticipatory bail is available under these laws. Read this detailed analysis of the landmark ruling!
Table of Contents
Introduction
In a significant ruling, the Supreme Court in Radhika Agarwal v. Union of India and Ors. (2025 SC) clarified that the provisions protecting the rights of arrested persons under the Bharatiya Nagrik Suraksha Sanhita, 2023 (BNSS 2023) are equally applicable to the GST Act and the Customs Act. This ruling ensures that individuals arrested under these laws enjoy the same legal protections as those arrested under the general criminal law framework.
Furthermore, the Court held that anticipatory bail provisions apply to both the GST and Customs Acts, allowing individuals to seek protection against arrest even without the registration of an FIR.
This judgment reinforces constitutional safeguards against arbitrary arrests and strengthens the protection of personal liberty in tax-related offenses.
Key Legal Takeaways from the Supreme Court Ruling
1. BNSS 2023 Provisions Apply to GST & Customs Act Arrests
The Supreme Court clarified that the rights of accused persons under BNSS 2023 apply to all arrests made under the GST Act and the Customs Act. This aligns with the principle that every arrested individual must be granted fundamental legal protections.
The Court also referred to its earlier decision in Arvind Kejriwal v. Directorate of Enforcement (2023) regarding arrests under the Prevention of Money Laundering Act (PMLA), where it held that authorities must have “reasons to believe” before making an arrest. The same reasoning was applied to Section 69 of the GST Act and Section 104 of the Customs Act, both of which deal with the power of arrest.
2. Requirement for Certifiable Material Before Arrest
The Court emphasized that:
- Arrests cannot be made on mere suspicion.
- Officers must possess certifiable material justifying an arrest.
- This material should be verifiable by a Magistrate to ensure accountability.
This ruling prevents arbitrary and excessive use of arrest powers by GST and Customs officials.
3. Anticipatory Bail Provisions Extended to GST and Customs
A major highlight of this judgment is that anticipatory bail under BNSS 2023 is now applicable to the GST and Customs Acts.
- No FIR required: Individuals fearing arrest can directly approach the court for anticipatory bail.
- This extends a critical safeguard against wrongful arrests in tax-related cases.
This decision effectively overcomes previous uncertainty regarding pre-arrest protections in GST and Customs-related offenses.
4. Strict Compliance with GST Department’s Circulars on Arrest
The Court mandated that all circulars issued by the GST department regarding arrests must be strictly adhered to. This prevents tax officers from exercising discretionary powers arbitrarily.
Additionally, the Court reiterated that Customs Officers are not “Police Officers” under the law and therefore cannot exercise the same level of investigative powers as regular police personnel.
Concerns About Coercion and Harassment by Tax Officials
The Supreme Court acknowledged complaints of coercion and harassment by GST and Customs officials.
“We have commented on the basis of data with regard to allegations that there was force and coercion in the payment of taxes. Wherever a person is disposed to pay, he can go to the writ court and get an order. And the officers will have to be dealt with departmentally also.”
— Chief Justice of India Sanjiv Khanna
The Court made it clear that coercion in tax collection is illegal and that taxpayers have the right to approach the High Court under Article 226 if they face undue pressure.
Furthermore, the Court emphasized that:
- Strict action must be taken against officers engaging in harassment.
- Departmental proceedings should be initiated against those violating legal guidelines.
This ensures greater accountability within the tax administration system.
Bench Observations & Key Takeaways
The judgment was delivered by a bench of Chief Justice of India Sanjiv Khanna and Justices MM Sundresh, Bela M Trivedi, and addressed over 279 petitions challenging the penal provisions under the GST and Customs Acts.
Key Bench Observations
- No Private Complaints Under GST Act
- The Court ruled that individual complaints cannot be filed under GST laws. Only designated tax officers can initiate action.
- Ambiguity in Section 69 of GST Act
- The Court observed that ambiguities in arrest provisions should not lead to harassment of citizens.
- The law will be interpreted in favor of liberty if needed.
- Arrest Power vs. Necessity of Arrest
- The Court clarified that the power to arrest does not mean that arrest is always necessary for investigations.
- Changes in the Om Prakash Judgment
- The Court acknowledged that recent legislative amendments have diluted the Om Prakash v. Union of India (2011) ruling, but they have not completely done away with its principles.
These observations highlight the need for caution, transparency, and accountability in the exercise of arrest powers by tax authorities.
Impact of the Ruling on Tax Law Enforcement
1. Strengthening Protection of Personal Liberty
By extending BNSS 2023 protections to tax-related offenses, the Court has reinforced the fundamental rights of individuals against arbitrary detention.
2. Reducing Harassment in Tax Enforcement
The ruling discourages unlawful coercion by tax officials and promotes fair enforcement.
3. Enhanced Judicial Oversight
Requiring certifiable material for arrest strengthens judicial review and prevents misuse of power.
Frequently Asked Questions (FAQs)
1. What is the key takeaway of the Supreme Court ruling in Radhika Agarwal v. Union of India?
The Supreme Court held that rights of arrested persons under BNSS 2023 apply equally to arrests under the GST and Customs Acts. It also ruled that anticipatory bail is available under these laws.
2. Can tax officials arrest individuals under GST and Customs laws without strong evidence?
No, the Court ruled that arrests cannot be made on mere suspicion. Officers must have certifiable material that can be verified by a Magistrate.
3. Is anticipatory bail now available for offenses under the GST and Customs Acts?
Yes, the Court confirmed that anticipatory bail provisions apply to tax-related offenses, even before an FIR is registered.
4. What action can be taken against coercive tax enforcement practices?
Victims of tax harassment or coercion can file a writ petition before the High Court under Article 226. The Court also directed departmental action against offending officers.
5. What was the Supreme Court’s view on Customs Officers being “Police Officers”?
The Court rejected the argument that Customs Officers are “Police Officers”, stating that they do not have the same powers of investigation.
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