The top court also ruled that any circulars of arrest issued by the GST department must be strictly adhered to.
File Photo: Supreme Court of India
In an important judgement , the Supreme court on Thursday held that persons accused under the Central Goods and Services Tax (CGST) Act and the Customs Act would be entitled to the same protections as available under the criminal code including anticipatory bail even in the absence of an FIR.
A bench comprising Chief Justice Sanjiv Khanna, Justice M.M. Sundresh and Justice Bela M. Trivedi clarified that the safeguards provided by the Code of Criminal Procedure (CrPC), 1973, now replaced by the Bharatiya Nagarik Suraksha Sanhita (BNSS), applies to arrests under the tax laws.
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The top court ruling came on a batch of petitions challenging the penal provisions in the Customs Act, the GST Act as being non compatible with the Code of Criminal Procedure and the Constitution.
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The top court stated that any threats and coercion by enforcement officers during search and seizure operations must result in departmental action. It also expressed concern over arbitrary use of excessive powers granted to the officials under GST and customs laws.
In the course of the hearing last year the petitioners had argued that such actions violated Articles 20(3) and 21 of the Constitution, which safeguards the right against self-incrimination and guarantee personal liberty.
Speaking for the bench, the Chief Justice Sanjiv Khanna said, “We have commented on the basis of data about allegations that there was force and coercion in the payment of taxes. We have said there may be some merit in it. Wherever a person is disposed to pay, he can go to the writ court and get an order. And the officers will have to be dealt with departmentally also. This cannot be permitted; it is contrary to the law. We have referred to the Nandini Satpathy case in that regard,”.
The top court also ruled that any circulars of arrest issued by the GST department must be strictly adhered to.
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