Supreme Court (SC) The Finance Minister on Wednesday directed the Central government not to use ‘threats and coercion’ during search and seizure operations against traders for recovery of Goods and Services Tax (GST), and asked them to voluntarily pay the dues. Let it be celebrated. A bench of Justices Sanjiv Khanna, MM Sundaresh and Bela M Trivedi said there is no provision under the GST law that empowers officials to use force for payment of dues.
force should not be used
This bench of the apex court is examining various provisions of the GST Act. “There is no power under this Act to compel any person to pay tax liability during search and seizure,” the bench said. Tell your department that payment should be made voluntarily and no force should be used. You will have to give the alleged criminal three-four days to think, seek advice and fulfill his obligations. This should be voluntary and no threat or coercive action should be used.
Most payments were voluntary
Additional Solicitor General SV Raju, appearing for the Centre, while not ruling out the possibility of use of force in the past during GST collection, said that most of the payments during searches and seizures have been voluntary. “There is a possibility of both methods of recovery but most of the payments are made voluntarily or after a few days in consultation with a lawyer,” he said in a long hearing on the GST Act. Yes, there may have been some instances in the past but it is not the norm.” To this, the bench said that several petitioners have accused the authorities of using threats and coercion during search and seizure operations.
you need some time
“We know what happens during search and seizure of a person,” the bench said. If tax payment is refused you can temporarily attach the assets but you will have to take some time to consult, think and consider. You cannot put him under pressure of threat and arrest.” When the Additional Solicitor General said that many times alleged criminals adopt various methods to evade taxes, the bench said, “Arrest them but it is strictly in accordance with the law.” Should be as per the procedure prescribed under.
provision for arrest
There is a provision for arrest under Section 69 of the GST Act.” Counsel for one of the petitioners, Sujit Ghosh, said the safeguards provided under the law have not been implemented and instead people have been threatened with arrest to force them to pay. She goes. While hearing 281 petitions challenging various provisions of the GST Act, Customs Act and Prevention of Money Laundering Act, the bench told Raju that there is a provision for checks and balances in the GST law. The Supreme Court said, “We have to ensure that security measures are taken.” There should be strict compliance with Section 69 (power to arrest) and Section 70 (power to summon). When the legislature has put in place safeguards, they need to be strictly implemented.”
The hearing will continue on Thursday also
The hearing in this case has not been completed and it will continue on Thursday also. The top court had last week asked the Center to issue a notice under the provisions of the GST Act and provide details of the arrests. She had said that she could interpret this law and give appropriate guidelines to protect citizens from harassment.
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