The Allahabad High Court has quashed the remand order and declared the arrest of a television importer illegal on multiple grounds, including the clubbing of “clandestine removal” under Section 132(1)(a) with “undervaluation” under Section 122(1)(i) in a single arrest.
The petitioner, engaged in importing and assembling unbranded televisions, was arrested on 11.02.2026 for alleged tax evasion of Rs. 39.50 crore. In the first remand application, the Revenue bifurcated the amount as Rs. 11.83 crore for clandestine removal and Rs. 16.15 crore for undervaluation. In the second remand application, the bifurcation was obliterated.
The court held that the offence of “undervaluation” under Section 122(1)(i) is distinct from “clandestine removal” under Section 132(1)(a), and that Section 74 procedure applies to undervaluation. These offences cannot be clubbed.
The court further found that the grounds of arrest bore no DIN in violation of Circular No. 128/47/2019-GST, no Section 35(3) BNSS notice was issued as mandated by the Supreme Court in Satender Kumar Antil v. CBI [(2026) SCC Online 162], relatives were not informed at the time of arrest, and the place of arrest was not mentioned in violation of D.K. Basu v. State of West Bengal [(1997) 1 SCC 416].
The court issued strictures against the Remand Magistrate (Special CJM, Meerut) for mechanically passing the order without considering objections and directed the District Judge, Meerut, to ensure compliance with law.
The respondents were left at liberty to proceed afresh in accordance with law.
Rajeev Kumar v. Directorate General of GST Intelligence & Another | Habeas Corpus Writ Petition No. 256/2026 | 3 April 2026 | Allahabad HC