Goods and Services Tax evasion: SC agrees to examine power of tax officials to arrest individuals

Issuing notices to the central government and private parties, the Supreme Court on Wednesday agreed to consider the legal questions relating to the power of government officials to arrest persons for Good and Services Tax (GST) evasion.

The vacation bench, headed Chief Justice of India Ranjan Gogoi and Justice Anirudha Bose, directed the government to reply to the notice within four weeks on the issue of arrest for GST evasion, observing that the “position of the law” has to be clarified since “different high courts of the country have taken divergent views”.

“As different high courts of the country have taken divergent views in the matter, we are of the view that the position in law should be clarified by this Court. Hence, the notice,” the bench said. A three judge bench will now hear the matter.

The direction comes after the central government had on Tuesday moved the Supreme Court seeking a clarification on the powers of officers under the Central Goods and Service Tax (CGST) Act to arrest accused persons without the filing of an FIR.