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Context:

Supreme Court Limits Arrest Powers Under GST and Customs Acts.

News in Detail

The Supreme Court has recently imposed limitations on the arrest powers of officials under the Central Goods and Services Tax (CGST) Act, 2017, and the Customs Act, 1962, in the case of Radhika Agarwal v/s Union of India.

The decision aims to bring the arrest procedures under these economic legislation in line with the safeguards provided under the Code of Criminal Procedure, 1973 (CrPC), to ensure greater protection of individual liberties and procedural fairness.

Highlights of the Ruling

Police Powers

The Supreme Court clarified that while officers under the Customs Act and CGST Act are not police officers, however, they exercise powers "similar" to those of police, including the power to investigate, arrest, search, seize, and interrogate.

These officers must follow the same procedural standards and restrictions that apply to police under the CrPC.

Procedural Safeguards

The ruling mandates that arrests under the Customs Act and CGST Act must comply with several procedural safeguards:

• Presentation Before a Magistrate: Arrested individuals must be produced before a magistrate within 24 hours of arrest.
• Notification of Arrest: Officials must inform a family member or friend of the arrestee about the arrest.
• Right to Legal Representation: Arrestees have the right to have an advocate present during interrogation.

Three Essential Requirements for Arrest

Drawing from its previous judgment in Arvind Kejriwal v/s Directorate of Enforcement, the Supreme Court established three critical prerequisites for lawful arrests under these acts:

• Officers must possess concrete evidence that enables them to form a reasoned opinion, recorded in writing, that the arrestee is guilty of an offense. They cannot base arrests on mere suspicion or conjecture and must consider all material evidence, including that which might exonerate the person.
• The arresting officer must document their "reasons to believe" that the individual is guilty, based on the material evidence they possess. These reasons must have a clear connection to the case material.
• The grounds for arrest must be communicated to the arrested individual to allow them to effectively challenge the arrest and apply for bail.

Addressing Misuse of Powers

The Supreme Court ruled that tax officials cannot legally threaten individuals with arrest to force payment of overdue taxes. Individuals subjected to such coercion are entitled to seek refunds through the courts, and disciplinary action will be taken against officers found to have engaged in such practices.

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Source:

INDIAN EXPRESS

https://t.me/+hJqMV1O0se03Njk9