FININ2MIN · JUDGMENT INTELLIGENCE
GST · F2J-C-2762

Waseem Akram Khan & Anr. v. State of Karnataka through Additional Commissioner of Commercial Taxes (Enforcement)

VALIDATED FULL-TEXT JUDGMENT
Court
Karnataka High Court
Bench
S. Vishwajith Shetty
Case number
Criminal Petition No. 9273 of 2026
Decision date
2026-08-27
Neutral citation
2026:KHC:46077
CNR
KAHC010435212026
Disposition
Disposed With Directions.
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Two-minute summary

A section 69 authorisation is a prerequisite to the apprehended GST arrest. In light of the State's statement that no arrest would occur without such an order and communication, the apprehension was premature; liberty to seek bail later was preserved.

Material facts

DIRECTING THE RESPONDENT AUTHORITY TO RELEASE THE PETITIONERS ON BAIL IN THE EVENT OF THEIR ARREST IN CASE ID NO.AD2905260142636/2026-2027 DATED 15.05.2026 AND PURSUANT TO THE SUMMONS DATED 21.05.2026 AND 22.05.2026 ISSUED AGAINST THEM IN CONNECTION WITH THE VIOLATION OF PROVISIONS OF CGST ACT 2017 OR KGST ACT 2017. Petitioners are before this Court under Section 482 of BNSS 2023, seeking anticipatory bail apprehending their arrest in case ID No.AD 2905260142636/2026-2027 pursuant to the enquiry notice dated 21.05.2026 and 22.05.2026, received by them from the respondent- authority. Learned State Public Prosecutor submits that only summons has been issued for enquiry in exercise of the powers under Section 70 of the Central Goods and Services Tax Act, 2017 (for short, 'the Act') and no order has been passed under Section 69 of the Act by the Commissioner authorizing the competent officers to arrest the petitioners.

Issues

Court reasoning

Petitioners are before this Court under Section 482 of BNSS 2023, seeking anticipatory bail apprehending their arrest in case ID No.AD 2905260142636/2026-2027 pursuant to the enquiry notice dated 21.05.2026 and 22.05.2026, received by them from the respondent- authority. Consequently, an order under HC-KAR NC: 2026:KHC:46077 CNR: KAHC010435212026 Section 69 of the CGST Act would be a sine qua non to maintain an application seeking such bail. This Court, in the case of Abdul Majid Vs.

Ratio / controlling principle

A section 69 authorisation is a prerequisite to the apprehended GST arrest. In light of the State's statement that no arrest would occur without such an order and communication, the apprehension was premature; liberty to seek bail later was preserved.

Operative order

that without an order passed under Section in Criminal Petition No. 9260/2026 and other connected cases disposed of on 05.08.2026, HC-KAR NC: 2026:KHC:46077 CNR: KAHC010435212026 69 of the Act, and without communicating the same to the petitioners, they will not be arrested, I am of the opinion that the apprehension expressed, at this stage, is misconceived. Accordingly, the following: ORDER Criminal petition is disposed of with liberty to the petitioners to file a fresh bail application if need arises.

Statutes and provisions

Scope limits

Completeness and review

Source text
Complete judgment text, validated against the public source
PDF status
Generated from validated complete text (not an official court PDF)
Text-to-PDF match
Passed
PDF pages
5
Source words
1,487
Later history
Not verified — check the official court record for later history before reliance (as of 20 Sep 2026)
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                                   Mr. Waseem Akram Khan vs The State By on 27 August, 2026







Mr. Waseem Akram Khan vs The State By on 27 August, 2026







Author: S Vishwajith Shetty







Bench: S Vishwajith Shetty







                                                                   -1-



                                         HC-KAR                                        NC: 2026:KHC:46077



                                                                                   CRL.P No. 9273 of 2026



















                              CNR: KAHC010435212026



















                                      IN THE HIGH COURT OF KARNATAKA AT BENGALURU







                                          DATED THIS THE 27TH DAY OF AUGUST, 2026







                                                       BEFORE



                                   THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY



                                         CRIMINAL PETITION NO. 9273 OF 2026



                              BETWEEN:







                              1.       MR. WASEEM AKRAM KHAN,



                                       S/O. RAHAMATHULLA KHAN,



                                       AGED ABOUT 42 YEARS,



                                       OCC: PROPRIETOR OF



                                       M/S. MEHRAN STEEL INDUSTRIES,



                                       NO.3/2, KUMBALAGUDU,



                                       KENGERI, KAMBIPURA VILLAGE,



                                       BENGALURU - 560 060.







                              2.       MR. MEHRAN PASHA,



                                       S/O. ASLAM PASHA,



                                       AGED ABOUT 31 YEARS,



         Digitally                     OCC: PERSON-IN-CHARGE OF



         signed by



         NANDINI M S                   M/S. MEHRAN STEEL INDUSTRIES,



         Location:                     NO.3/2, KUMBALAGUDU,



         HIGH COURT



         OF                            KENGERI, KAMBIPURA VILLAGE,



         KARNATAKA



                                       BENGALURU - 560 060.



                                                                                              ...PETITIONERS



                              (BY SRI. BALAKRISHNA M.R., ADVOCATE)







                              AND:







                              THE STATE BY







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                                   Mr. Waseem Akram Khan vs The State By on 27 August, 2026







                              ADDITIONAL COMMISSIONER OF



                              COMMERCIAL TAXES (ENFORCEMENT),



                              SOUTH ZONE, ROOM NO.204,



                                                      -2-



                    HC-KAR                                                     NC: 2026:KHC:46077



                                                                         CRL.P No. 9273 of 2026



















         CNR: KAHC010435212026



















         2ND FLOOR, B BLOCK,



         V.T.K.-2 BUILDING,



         RAJENDRANAGARA,



         KORAMANGALA,



         BENGALURU - 560 047.







         REPRESENTED BY



         STATE PUBLIC PROSECUTOR,



         HIGH COURT BUILDING,



         BENGALURU - 560 001.



                                                                                       ...RESPONDENT



         (BY SRI.JAGADEESHA B.N., S.P.P. A/W



             SRI.RANGASWAMY R., HCGP)



















                THIS CRL.P. IS FILED U/S 438 OF CR.PC (FILED U/S 482



         BNSS)       PRAYING     TO    PASS     AN   ORDER     DIRECTING                            THE



         RESPONDENT AUTHORITY TO RELEASE THE PETITIONERS ON



         BAIL     IN       THE  EVENT   OF     THEIR   ARREST     IN   CASE                          ID



         NO.AD2905260142636/2026-2027                DATED    15.05.2026                            AND



         PURSUANT            TO THE    SUMMONS       DATED    21.05.2026                            AND



         22.05.2026 ISSUED AGAINST THEM IN CONNECTION WITH



         THE VIOLATION OF PROVISIONS OF CGST ACT 2017 OR KGST



         ACT 2017.







                    THIS PETITION, COMING ON FOR ORDERS, THIS DAY,







         ORDER WAS MADE THEREIN AS UNDER:







         CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY



                                              -3-



                 HC-KAR                                   NC: 2026:KHC:46077



                                                    CRL.P No. 9273 of 2026



















         CNR: KAHC010435212026



















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                                   Mr. Waseem Akram Khan vs The State By on 27 August, 2026











                                                         ORAL ORDER











1. Petitioners are before this Court under Section 482 of BNSS 2023, seeking anticipatory bail



apprehending their arrest in case ID No.AD 2905260142636/2026-2027 pursuant to the enquiry



notice dated 21.05.2026 and 22.05.2026, received by them from the respondent- authority.







2. Learned State Public Prosecutor submits that only summons has been issued for enquiry in



exercise of the powers under Section 70 of the Central Goods and Services Tax Act, 2017 (for short,



'the Act') and no order has been passed under Section 69 of the Act by the Commissioner



authorizing the competent officers to arrest the petitioners. Placing reliance on the judgment of the



Hon'ble Supreme Court in the case of Union of India Vs. Sunil Biyani1, he submits that, at this stage,



the apprehension expressed by the petitioners is 2026 SCC Online SC 1544 HC-KAR NC:



2026:KHC:46077 CNR: KAHC010435212026 mis-conceived and only after a communication is



issued to the petitioners pursuant to the order passed under Section 69 of the Act, a pre-arrest bail is



maintainable. In support of his arguments, he has placed reliance on paragraph Nos.15 to 18 of the



aforesaid judgment, wherein, the Hon'ble Supreme Court has observed as follows:







         "15. Sub-section (1) of Section 69 grants the Commissioner the power to authorise



         any officer to arrest a person. Such order must, as prescribed, be preceded by



         "reasons to believe". Such reasons in turn, must refer to the material and evidence



         underlying such opinion and evince application of mind. These are, among others,



         the stipulations laid down in Radhika Agarwal (supra).







         16. According to Mr. Agarwal, learned senior counsel for the respondent, what



         necessarily follows is that until and unless an order under Section 69 of the CGST Act



         is passed by the Commissioner recording the "reasons to believe" that an offence



         under Section 132 of the CGST Act has been committed, no alarm is activated and



         there cannot be any apprehension of arrest by the person summoned. In other words,



         once the Commissioner concludes that there are "reasons to believe" that any offence



         of the nature stated in Section 69 has been committed warranting an arrest and an



         order to that effect is passed, the alarm is activated and the person (alleged to be the



         offender, whose arrest is authorised) becomes an accused who is open to be arrested



         and, thus, acquiring the right to seek pre-arrest bail. Consequently, an order under



         HC-KAR NC: 2026:KHC:46077 CNR: KAHC010435212026 Section 69 of the CGST



         Act would be a sine qua non to maintain an application seeking such bail.







         17. In such circumstances, the contention of Mr.Agarwal has been that unless the



         order passed under Section 69 is communicated to the accused, in this case the



         respondent, he cannot apply for an anticipatory bail. It has further been contended



         that though not mandated by the statute, by extension of the principles of natural



         justice and fairness in administrative action, the requirement of communication of



         the order passed under Section 69 of the CGST Act to the accused before he is



         arrested, has to be read into the statute and communication of such an order to the



         person sought to be arrested must be held to be mandatory. If not, it would lead to a



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                                   Mr. Waseem Akram Khan vs The State By on 27 August, 2026







         catch-22 situation where the accused can neither apply for anticipatory bail till the



         order under Section 69 is passed nor does he become aware of the order to subject



         the same to a challenge on available grounds before an appropriate forum.







         18. We are inclined to accept the contention of Mr.Agarwal. The order under Section



         69 of the CGST Act, as held, being a sine qua non to seek anticipatory bail, it would be



         an anomaly to hold that the order need not be communicated at all, much less, be



         communicated after the arrest of such person. In any case, communication of the



         order would not, in any manner, obstruct the investigation ensued by the



         department. On the contrary, it reinforces the right of the accused to seek



         anticipatory bail as stipulated in Sushila Aggarwal v. State (NCT of Delhi) (2020)5



         SCC1.







         3. This Court, in the case of Abdul Majid Vs. The Assistant Commissioner of



         Commercial Taxes (ENF)-







                  HC-KAR                                                  NC: 2026:KHC:46077



















         CNR: KAHC010435212026



















         04,        Bengaluru,2 in paragraph No.17 has observed as







         follows:



















         "Section 69 of the Act states that where the Commissioner has reason to believe that



         the person has committed any offence specified in clause (a) or clause (b) or clause



         (c) or clause (d) of sub-section (1) of Section 132 which is punishable under clause







         (i) or (ii) of sub-section (1) or sub-section (2) of the said section, he may by order,



         authorize any officer of central tax to arrest such person. Sub-Section (2) requires



         that where a person is arrested under sub- section (1) for an offence specified under



         sub-section (5) of Section 132, the officer authorized to arrest the person shall inform



         such person of the grounds of arrest and produce him before a Magistrate within 24



         hours. From the aforesaid, it is apparent that only on authorization by the



         Commissioner under sub-section (1) of Section 69 of the Act, a person can be arrested



         for an offence specified under sub-section (5) of Section 132 of the Act."







However, in the said case, since the respondent had opposed the bail application stating that they



have powers to arrest a person pursuant to summons under Section 70 of the Act, anticipatory bail



was granted to the petitioner therein. Since, the State Public Prosecutor has now made a submission



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                                   Mr. Waseem Akram Khan vs The State By on 27 August, 2026







that without an order passed under Section in Criminal Petition No. 9260/2026 and other



connected cases disposed of on 05.08.2026, HC-KAR NC: 2026:KHC:46077 CNR:



KAHC010435212026 69 of the Act, and without communicating the same to the petitioners, they



will not be arrested, I am of the opinion that the apprehension expressed, at this stage, is



misconceived. Accordingly, the following:







         ORDER Criminal petition is disposed of with liberty to the petitioners to file a fresh



         bail application if need arises.







         Sd/-







         (S VISHWAJITH SHETTY) JUDGE tsn* List No.: 1 Sl No.: 14



















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