GST Arrest Requires Prior Order Under Section 69 – Bombay High Court's Ruling in Sunil Biyani vs Union of India
Background and Context
The case of Sunil Biyani Vs Union of India before the Bombay High Court raises a critical question concerning the procedural safeguards available to an assessee under the Central Goods and Services Tax Act, 2017 — specifically, whether an arrest can be effected solely on the basis of summons issued under Section 70 of the CGST Act, without a preceding authorisation order under Section 69.
The matter arose when the assessee filed an Anticipatory Bail Application before the Bombay High Court, apprehending imminent arrest by the respondent authorities. The basis of this apprehension was summons that had been served upon him under Section 70 of the Central Goods and Services Tax Act, 2017. This case has attracted significant attention from the legal and business community, given its direct bearing on the powers of GST authorities to arrest assessees during investigation proceedings.
Procedural Background
During an earlier hearing, the Bombay High Court passed an order on 23rd January 2026, directing the respondent — the Union of India — to produce, on the next date of hearing, any order that may have been passed by the concerned Commissioner under Section 69 of the Central Goods and Services Tax Act, 2017. The Court had also granted an ad-interim order in favour of the assessee, which was directed to continue until the matter was next taken up.
The relevant portion of the Court's order dated 23rd January 2026 reads as follows:
"1. At the request of learned Special PR list on 05.02.2026 at 3:00 p.m. 2. The learned Special PR on the next date, shall produce the order passed by the concerned Commissioner in terms of Section 69 of the Central Goods and Services Tax Act, 2017 in the present matter. 3. Ad-interim order to continue till the next date."
In compliance with this judicial direction, the respondent filed an Additional Affidavit dated 4th February 2026. The critical disclosure made in Paragraph No. 2 of the said affidavit was as follows:
"2. As on the date hereof, no order under Section 69 of the CGST Act, 2017 has been passed in this matter, accordingly, there is no such order to produce today."
This admission by the respondent itself became the pivot around which the entire legal determination turned.
Statutory Framework: Understanding Section 69 and Section 70 of the CGST Act, 2017
To fully appreciate the significance of the Court's ruling, it is essential to understand the distinct roles played by Section 69 and Section 70 of the Central Goods and Services Tax Act, 2017.