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Dated: 27.02.2025

Supreme Court Upholds Powers to arrest Under Customs & GST Laws

The Supreme Court in Radhika Agarwal v. Union of India upheld the power of arrest under the Customs Act and GST Act, clarifying that customs officers are not police officers but can arrest for serious offences without prior magistrate approval. The ruling reinforces due process safeguards while ensuring legislative intent is upheld, balancing enforcement with protection of personal liberty.

1. Background & Legal Issue:

• The case originates from the Supreme Court’s previous ruling in Om Prakash v. Union of India (2011), where it was held that offences under the Customs Act and Excise Act were non-cognizable and bailable, requiring a warrant for arrest.
• This ruling limited the power of arrest available to customs and excise officers.
• The judgment in Om Prakash had significant implications, leading to subsequent legislative amendments.

2. Legislative Amendments:

• 2012, 2013, and 2019 Amendments to the Customs Act modified the interpretation of arrest provisions.
• The amendments created two categories of offences:
  • Cognizable & Non-bailable offences (serious violations like evasion of duty above ₹50 lakh, fraudulent claims, and smuggling prohibited goods).
  • Non-cognizable & Bailable offences (minor infractions).
• The GST Act also followed similar provisions.

3. Court’s Ruling on Arrest Powers:

• The Supreme Court upholds that customs officers are not police officers, reiterating previous judgments such as State of Punjab v. Barkat Ram (1962), Ramesh Chandra Mehta v. State of West Bengal (1969), and Tofan Singh v. State of Tamil Nadu (2021).
• The ruling clarifies that while customs officers do not have police powers, they are authorized to arrest and investigate cases under their respective laws.
• The requirement of “reason to believe” in writing before making an arrest is a constitutional safeguard to protect personal liberty.

4. Impact of Amendments:

• The Om Prakash ruling no longer applies due to legislative changes.
• The new amendments to the Customs Act classify serious offences as cognizable and non-bailable, allowing customs officers to arrest without a magistrate’s prior approval.
• The court acknowledges the legislative intent behind these amendments and refuses to re-examine the correctness of Om Prakash in light of these changes.

5. Due Process and Safeguards:

• The judgment highlights safeguards for individuals arrested under the Customs and GST Acts:
  • Right to be informed of grounds of arrest.
  • Right to legal representation during interrogation.
  • Arrest should not be arbitrary, and officers must have documented reasons.
  • Courts have the power to review the legality of arrests to prevent misuse.

6. Judicial Review & Personal Liberty:

• The ruling references Arvind Kejriwal v. Directorate of Enforcement (2025) and previous cases like Pankaj Bansal v. Union of India (2023), reinforcing that:
  • Arrests cannot be arbitrary; there must be clear material evidence.
  • Courts can judicially review arrests made under special laws like PMLA, Customs, and GST.

Conclusion:

The Supreme Court upholds the validity of the amendments to the Customs and GST Acts, rejecting the challenge to the power of arrest by customs officers. However, it emphasizes procedural safeguards to prevent misuse and protect constitutional rights. The judgment aligns with legislative intent while ensuring compliance with due process and judicial oversight.

Earlier Article/Post: Supreme Court Ruling on Arrest Powers under GST and Customs Act-CrPC/BNSS Provisions applies

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Source: Supreme Court of India

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