Quick Summary
The Supreme Court has directed the Centre to avoid making arrests in all Goods and Services Tax (GST) cases unless there is credible evidence and tangible material proving culpability. This statement came from a bench comprising Justices Sanjiv Khanna, MM Sundresh, and Bela M Trivedi, who emphasized
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FAQ :
The Supreme Court has directed the Centre to avoid making arrests in all GST cases unless there is credible evidence and tangible material proving culpability.
No, the Supreme Court clarified that the legislation does not mandate arrests merely for investigation purposes and that adjudication should precede arrest.
Arrests must be based on credible evidence and tangible material proving culpability, not just suspicion or for the purpose of investigation.
The court stated that the power of arrest is distinct from the necessity of arrest, and the principle of liberty should not be compromised.
The court will review the definitions of 'reason to believe' and 'grounds of arrest' under Section 69 of the GST Act and Section 104 of the Customs Act.
The court urged the Centre to avoid using 'threat and coercion' in GST recovery efforts and advocated for voluntary compliance by taxpayers.
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