Arrest Not Illegal: Supreme Court Dismisses Writ Petition Of Chinese National Challenging Arrest By CGST

The Supreme Court of India dismissed a Writ Petition filed by a Chinese National on the ground that her arrest by the Central Goods and Services Taxes was illegal and said that it was difficult to say that the arrest was illegal.

The Writ Petition was filed by a Chinese National on the ground that her arrest by the Commissioner, Central Goods and Services Taxes, Commissionerate, Gautam Buddha Nagar, Greater Noida was illegal and thereby violative of Article 21 of the Constitution of India.

The Bench of Justice J.B. Pardiwala and Justice K.V. Vishwanathan observed, “Having heard the learned counsel appearing for the parties and having gone through the materials on record, we are of the view that it is difficult for us to say that the very arrest of the petitioner was illegal.”

Advocate Abhijeet Bhati represented the Petitioners, ASG Aishwarya Bhati represented the Union of India.

Case Brief

A Chinese National filed a Writ Petition and contended that she was arrested by the CGST on August 26, 2025 and since then, she has been in judicial custody. The Chinese National did not apply for bail, and at the same time, the CGST had not filed any complaint for the alleged offence in accordance with law.

The Union of India provided a compilation containing the basic facts of the case, the Arrest Memo issued under Section 69 of the Central Goods and Services Tax Act, 2017, the grounds for arrest furnished to the petitioner, and the order passed by the Commissioner under Section 69(1) of the Act, 2017.

It was also submitted that the investigation was at a nascent stage. There was prima facie material on the basis of which the Petitioner was arrested. The Union contended that the arrest cannot be termed in any manner as illegal or violative of Article 21 of the Constitution.

Court’s Observation

The Court noted the contents of the arrest memo, including the grounds for arrest, which underscored that the Department has initiated investigation against one Company by name M/s. Tantech LED Display Pvt. Limited. The investigation is being done by the Anti-Evasion Wing, CGST, Gautam Buddha Nagar.

“In the course of the investigation, as alleged the role of the present petitioner has prima facie figured. There are prima facie allegations of tax evasion”, the Court said.

The Supreme Court examined the Writ Petition from a limited angle and that is whether her detention as on date could be said to be unlawful, i.e. violative of Article 21 of the Constitution.

After considering the submissions of the Parties, the Court said, “Having heard the learned counsel appearing for the parties and having gone through the materials on record, we are of the view that it is difficult for us to say that the very arrest of the petitioner was illegal.”

However, the Court suggested that the Petitioner should immediately apply for bail before the Court concerned in accordance with law.

Accordingly, the Court disposed of the Writ Petition.

Cause Title: Xu Xunfu V. Union of India & Anr

Appearance:

Petitioner: Advocates Abhijit Anand and Umesh Dubey (AOR)

Respondents: Advocates Aishwarya Bhati (ASG), Poornima Singh, K. Rama Mohan Rao, Nithin P, Ruchi Kohli, Astha Singh, Lakshay Kumar Singh, Chitragda Rashtravara, Gurmeet Singh Makkar (AOR)

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