Masood, 40, who was arrested in the wee hours by police from his residence here, was produced before Deoband Judicial Magistrate Archana Rani who rejected his bail plea and sent him to judicial custody for 14 days.
The Congress candidate said he has no remorse for making the remark even as the BJP filed an official complaint with the EC against Congress for "repeatedly" violating the model code of conduct.
Soon after his arrest, Congress Vice President Rahul Gandhi cancelled his scheduled rally in Saharanpur today.
"Rahul Gandhi's rally is being postponed. The next date for it will be decided later on," CLP leader Pradeep Mathur said.
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A video footage of the election rally in Saharanpur, showing Masood attacking the BJP Prime Ministerial candidate, had gone viral on the web.
SSP Saharanpur Manoj Kumar said, "We received a video footage of Masood. Based on its review a case was registered in Deoband Police Station against him".
Necessary probe is being carried out and legal proceedings will be held, Kumar said.
The Congress candidate was seen in the video as saying that "If Modi tries to make Uttar Pradesh into Gujarat, then we will chop him into tiny pieces...I am not scared of getting killed or attacking someone. I will fight against Modi. He thinks UP is Gujarat. Only 4 per cent Muslims are there in Gujarat while there are 42 per cent Muslims in UP.