The power to arrest under Section 69 of the GST Act, 2017, is a serious matter and it’s important to understand it accurately. Here’s a breakdown:

Who can authorize arrest?

• The Commissioner of CGST/SGSTcan authorize any officer to arrest someone.

Who can be arrested?

Arrest is only allowed for offenses specified under Section 132(1)(a) to (d) of the Act. These include:

• Tax evasion exceeding ₹100 lakhs(or more for repeated offenses)
• Issuing fake invoices or bills
• Abetting the commission of any offense under the Act
• Obstructing an officer during any search, seizure, or investigation

Important conditions for arrest:

• The Commissioner must have reasons to believethe person committed the offense.
• The arrest must be for a cognizable offense. This means the police can also make the arrest without a warrant.
• The arrested person must be informed of the grounds of arrestand produced before a magistrate within 24 hours.

EXAMPLES

1. Specify the relevant Act: Section 69 exists in different Acts of Indian law, so knowing which one you’re referring to is crucial. Some possibilities include:
   • The Code of Criminal Procedure, 1973 (CrPC)
   • The Central Goods and Services Tax (CGST) Act, 2017
   • Other specific state Acts
2. Indicate the specific state in India: The powers of arrest under Section 69 may vary slightly depending on the state’s specific legislation. Knowing the state will help me tailor the example to your location.

FAQ QUES TION

Who can authorize an arrest under Section 69?

• Only the Commissioner of Central Goods and Services Tax (CGST) or State Goods and Services Tax (SGST) can authorize an arrest.

When can an arrest be made?

• An arrest can be made if the Commissioner has reason to believe a person has committed a specific offense:
  • Making supplies without any invoice (Section 132(1)(a))
  • Issuing invoices without any supply (Section 132(1)(b))
  • Collecting tax but not paying it to the government (Section 132(1)(c))
  • Taking input tax credit without receiving goods or services (Section 132(1)(d))
  • Habitually dealing in non-existent supplies (Section 132(5))
• Crucially, the combined tax evasion must be Rs. 2 crore or more.

What are the safeguards for the person arrested?

• If arrested for a cognizable offense (listed in Schedule I of CrPC), they must be informed of the grounds for arrest and produced before a magistrate within 24 hours.
• If arrested for a non-cognizable and bailable offense, they can be released on bail by the designated GST officer.
• All arrests must follow the Code of Criminal Procedure, 1973.

What are some additional points to remember?

• Arrest is a serious measure and only used in specific situations with substantial tax evasion.
• There are other investigative and enforcement measures taken before considering arrest.
• It’s advisable to consult a legal professional if facing accusations under the GST Act.

CASE LAWS

While I cannot provide legal advice, I can share some relevant information about case laws related to the powers of arrest under Section 69 of the Goods and Services Tax (GST) Act, 2017:

Key Points:

• Section 69 empowers authorized officers to arrest individuals suspected of specific offences punishable under Section 132 of the Act.
• The offences must be related to tax evasion, fraudulent claims, or obstructing investigations.
• Arrest requires “reasonable grounds to believe” an offence has occurred and that custodial interrogation is necessary.
• Specific procedures must be followed during arrest, including informing the person of the grounds and producing them before a Magistrate within 24 hours.

Relevant Case Laws:

• Kerala High Court, 2023:Upheld the use of Section 69 power by GST officials in a case involving non-issuance of invoices and substantial tax evasion. The court emphasized the need for reasonable grounds and potential for evidence tampering/witness intimidation.
• Madras High Court, 2022:Granted bail to an individual arrested under Section 69, citing technical irregularities in the arrest process and lack of sufficient evidence. This highlights the importance of following proper procedures.

Disclaimer:

• This information is for general awareness only and does not constitute legal advice.
• For specific legal guidance, please consult a qualified lawyer specializing in GST and criminal law.