Accused Cannot Be Kept in Custody Beyond 60 Days Without Filing Complaint Under GST Laws
By: Admin Date: January 15, 2025 Categories: Important Pronouncements Reading Time: 4 Minutes
Introduction
The Hon’ble Delhi High Court, in Commissioner of Central Tax, GST v. Adesh Jain [CRL. M.C. 2824 of 2019, dated August 30, 2024], ruled that authorities must not detain an accused/taxpayer for more than 60 days if they fail to file an investigation-related complaint under GST laws within the prescribed period. This decision underscores the necessity of complying with statutory timelines under Section 167(2) of the Criminal Procedure Code, 1973 (now Section 187(3) of Bharatiya Nagarik Suraksha Sanhita).
Case Highlights
Background
The Department contested the Chief Metropolitan Magistrate (CMM), Patiala House Courts, New Delhi’s order granting bail to Adesh Jain.
The CMM granted bail because the Department did not complete the investigation or file the required complaint within 60 days of custody.
Key Legal Question
Does the Department have the authority to detain an accused beyond 60 days if it fails to file a complaint under GST laws?
Court Observations
Section 167(2)(a)(ii) of the CrPC requires authorities to provide statutory bail to an accused when the prosecuting agency does not complete the investigation within 60 days.
This provision strikes a balance between safeguarding individual liberty and fulfilling procedural requirements.
Since the Department did not file the complaint within the 60-day period, the respondent’s right to statutory bail became enforceable.
Court’s Decision
The High Court rejected the Department’s petition due to its lack of merit.
The five-year delay in filing the complaint was deemed unreasonable.
Relevant Legal Provisions
Section 187(3) of Bharatiya Nagarik Suraksha Sanhita
Maximum Detention Period:
- 90 days for offences punishable with death, life imprisonment, or imprisonment of 10 years or more.
- 60 days for other offences.
After this period, the accused must be released on bail if they provide the requisite surety.
Instruction No. 04/2022-23 [GST-Investigation]
The Department must file complaints within 60 days of arrest in cases where bail is not granted, as mandated under GST laws.
Our Comments
This ruling highlights procedural safeguards that protect individual liberty. Furthermore, it holds investigating authorities accountable for adhering to timelines. Taxpayers and accused individuals should remain aware of their rights under Section 167(2) of the CrPC (now Section 187(3)) to prevent undue detention.
Authorities must prioritize timely filing of complaints to avoid legal challenges and misuse of procedural lapses.
