The Punjab & Haryana High Court has ordered the immediate release of businessman Kuldeep Goyal after finding that his arrest by Central GST (CGST) authorities appeared to be a "brazen act of highhandedness" and a prima facie violation of constitutional safeguards.
A Division Bench comprising Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor was hearing petitions arising from GST proceedings involving M/s Ansh Steel Alloys. Earlier, during proceedings on September 22, 2026, the Court had recorded an undertaking that the petitioner would appear before GST authorities on September 23 and directed the department to report the status of the matter on September 29.
In compliance with the Court's direction, the petitioner appeared before the authorities. However, GST officials subsequently issued fresh summons under Section 70 of the CGST Act and later arrested him. According to the petitioner, he was detained throughout the day and night before being formally shown as arrested at 4:45 AM on September 24.
Senior counsel for the petitioner argued that the arrest was carried out despite full cooperation with the investigation and highlighted discrepancies in official records. It was pointed out that the summons required appearance at 12:05 PM, even though the petitioner had already been present since 11:00 AM. Counsel further questioned the validity of the summons by noting that the Document Identification Number (DIN) reflected a generation time later than the appearance time mentioned in the notice.
The revenue authorities defended the arrest, contending that there was no judicial stay against arrest and that the petitioner had provided evasive responses during questioning. They argued that the arrest was necessary to ensure an effective investigation and prevent interference with evidence.
The High Court rejected these submissions, observing that the matter was already under judicial consideration and that the authorities should have informed the Court of any significant developments. The Bench noted that the petitioner had appeared pursuant to a judicial direction and was cooperating with the investigation.
The Court found the circumstances surrounding the issuance of summons and arrest deeply troubling. It observed that the arrest authorization did not refer to the pending court proceedings or the petitioner's appearance before authorities under the Court's order. The Bench further recorded a prima facie finding that the conduct of officials appeared intended to overreach the Court's proceedings.
Expressing concern over possible manipulation of records and disregard for judicial orders, the Court impleaded the Principal Commissioner of CGST, Ludhiana, and the concerned Senior Intelligence Officer in their personal capacities. Notices were issued requiring them to explain why disciplinary action should not be recommended against them.
Pending further consideration, the Court directed the Chief Judicial Magistrate, Ludhiana, to release the petitioner immediately, subject to specified conditions including surrender of passport and restrictions on travel outside India without permission.
The matter is scheduled for further hearing, where the Court will consider the explanations submitted by the concerned officers and examine whether disciplinary proceedings should be initiated.