Jharkhand HC Directs: GST Officers Cannot Compel Statements Beyond Office Hours & Must Comply with GST-Investigation and CBIC Guidelines When Summoning
By: Admin
June 19, 2024
Categories: GST Recent News
4 Min Read
In a recent case, a Division Bench consisting of Shree Chandrashekhar, ACJ, and Navneet Kumar, J., expressed their opinion that officers under the Central Goods and Services Tax Act, 2017 (CGST Act) should not compel individuals to provide statements beyond office hours. This decision was made in response to a situation where a petitioner was questioned late into the night and only allowed to leave after providing a satisfactory statement to the GST Officer. The Court also emphasized that GST officers should adhere to the guidelines and instructions provided by the Commissioner (GST-Investigation) and the Central Board of Indirect Taxes and Customs (CBIC) when summoning individuals under Section 70 of the CGST Act.
The Court highlighted the Constitution’s recognition of fundamental human rights, referencing Kharak Singh v. State of U.P., 1962 SCC OnLine SC 10, which ruled that regular nighttime police visits to an accused’s home constituted an invasion of privacy under Article 21. Furthermore, K.S. Puttaswamy (Privacy-9J.) v. Union of India, (2017) 10 SCC 1, established that the right to privacy is inherent in Article 21’s guarantees. The Court acknowledged the challenge individuals face when deciding whether to speak or remain silent when summoned by authorities such as Customs Officers, Central Sales Tax Officers, or Police Officers, given the serious implications involved. Additionally, Article 20(3) of the Constitution stipulates that no person accused of an offense can be forced to testify against themselves.
Under the CGST Act, individuals summoned to provide evidence or produce documents are obligated to tell the truth. According to Section 70(2), any inquiry under this Act is considered a judicial proceeding under Sections 193 and 228 of the Penal Code, 1860. Consequently, anyone who provides false information during such an inquiry is liable for prosecution.
The Court reiterated that GST Act officers should not coerce individuals into providing statements outside of office hours. The Court also noted the petitioner’s argument that the GST Intelligence and Investigation Manual, 2023, specifies that statements should be recorded during office hours. However, the Commissioner (GST-Investigation) maintained that cases with a risk of arrest or absconding during the inquiry could be considered exceptions.
Therefore, the Court referred to the guidelines and instructions issued by the GST-Investigation and directed that GST officers should comply with these guidelines and the instructions provided by the Commissioner (GST-Investigation) and the CBIC when summoning individuals under Section 70 of the CGST Act.
[Shiv Kumar Deora v. Union of India, W.P.(T) No. 354 of 2024, Order dated 13-05-2024]