Custom and GST officers have full right to arrest, Supreme Court said – provision is necessary

New Delhi. The Supreme Court has upheld the right to arrest of officers authorized under the Custom Act and GST Act. The court on Thursday dismissed the petitions challenging its constitutional validity. A bench of Chief Justice (CJI) Sanjeev Khanna admitted that these provisions are necessary for effective collection of GST and prevention of tax evasion.

The court clarified that the GST Act comes under Article 246-A of the Constitution, and the powers of arrest, summons and prosecution are important for tax collection. The court said that under Article 246-A, Parliament and the State Assembly have the exclusive right to make laws related to GST.

What did the Supreme Court say in its decision?
The court also clarified that customs officers are not police officers, as the Supreme Court has already clarified. The court also dismissed the challenge to the amendments and provisions of the Customs Act, maintaining that these provisions with legislative changes are in conformity with the law of the land and contain adequate safeguards to avoid unlawful arrest.

Citing the Customs Act, which clearly states the reasons for arrest in bailable, and non-bailable, cognizable and non-cognizable cases, the court said that the “reason to believe” should be clearly stated while justifying the arrest.

Taxpayers have the right to move court
CJI Khanna also said that if someone violates the law and attempts are made to threaten, force or coerce taxpayers, then in such cases taxpayers can resort to the court. The court also said that in such cases the tax deposited by them will also be refunded.

Conditions are put to avoid arrest!
Looking at the statistics, the court said that it shows that the number of people arrested is usually in hundreds or more. The figures relating to tax demand and tax collected, in fact, provide some clarity to the petitioners’ argument that taxpayers are forced to pay taxes as a condition for not being arrested.