GST Officers Should Not Coerce Individuals Summoned To Give Statements After Office Hours: Jharkhand High Court

The Jharkhand High Court has held that GST officers should not require or coerce individuals summoned under GST to give statements after office hours.

The division bench comprising Acting Chief Justice Shree Chandrashekhar and Justice Navneet Kumar emphasized, “In our opinion, the proper officer under the GST should not be requiring or forcing or coercing a person so summoned to give statement after the office hours.”

Salona Mittal, counsel for the petitioner, cited Section 50 of the Prevention of Money-Laundering Act, 2002, which is comparable to Section 70 of the GST. Mittal referenced the Supreme Court's interpretation in the case "Vijay Madanlal Choudhary v. Union of India" (2022 SCC OnLine SC 929), where it was held that officers under the PMLA are not police officers and do not exercise powers under the Code of Criminal Procedure. The Supreme Court had concluded that a person summoned under Section 50 is not considered an accused, and their statements do not equate to confessions, thus falling outside the protection of Article 20(3) of the Constitution.

Mittal also pointed to the FAQs on Goods and Services Tax available on the CBIC website, which outline the guidelines for issuing summons and the precautions to be observed. Furthermore, the GST Intelligence and Investigation Manual, 2023, provides detailed procedures for interrogation and recording statements, emphasising that statements should be recorded during office hours.

The Court acknowledged the GST Intelligence and Investigation Manual, 2023, which outlines procedures for interrogation, recording statements, preparation, questioning techniques, dealing with hostile individuals, retraction, judicial interpretations, and precautions. Specifically, the manual states under clause (iv) to paragraph 5.142 that statements should be recorded during office hours.

However, the Court noted that the Commissioner (GST-Investigation) has interpreted the term "exception" in clause (iv) to allow for after-hours statements in cases where there is a risk of individuals absconding or where arrests may occur.

In conclusion, the Court directed GST officers to adhere to the guidelines and instructions issued by the Commissioner (GST-Investigation) and the CBIC when summoning individuals under Section 70 of the GST Act.

Case Title: Shiva Kumar Deora vs Union of India And Ors

LL Citation: 2024 LiveLaw (Jha) 98

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