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Supreme Court Limits Arrest Powers Under CGST and Customs Acts

News In Detail

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

Background of the Case

The case originated from multiple petitions challenging the constitutional validity of arrest powers granted to customs and GST officers under the Customs Act, 1962, and the Central Goods and Services Tax Act, 2017 (CGST Act).

Under Section 104 of the Customs Act:

• Certain offenses (like evading customs duty exceeding Rs. 50 lakhs or dealing with prohibited goods) are classified as cognizable, which allow warrantless arrests.
• Other offenses require a magistrate's warrant for arrest.

Under Section 132 of the CGST Act:

• Offenses are classified as cognizable or non-cognizable based on their gravity.
• Section 69 of the CGST Act grants arrest powers to authorized officers.

Supreme Court's Ruling

The Court upheld the constitutional validity of the arrest powers, however, it also imposed essential conditions to prevent its misuse.

Procedural Safeguards

• Officers must record in writing their "reasons to believe" that an arrestee is guilty, based on reasonable material in their possession.
• Arrestees must be promptly informed of the specific grounds for their arrest, including the rationale behind the officer's belief of guilt.
• Customs and GST officers must adhere to the same procedural standards as police officers under the Code of Criminal Procedure, 1973, including:
  • Presenting arrestees before a magistrate within 24 hours
  • Informing a family member or friend of the arrest
  • Allowing access to legal counsel during interrogation

Protection Against Pressure

The Court prohibited tax officials from forcing individuals into paying overdue taxes by threatening arrest. It acknowledged data suggesting such practices may have emerged and established remedies for affected individuals, including the right to seek refund of coercively extracted payments and departmental action against offending officers.

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Source:

INDIAN EXPRESS

https://t.me/+hJqMV1O0se03Njk9