Arrest Powers Under GST and Customs Acts

GS 2- POLITY

Context

The Supreme Court has ruled that officers under the CGST and Customs Acts have powers similar to the police and must comply with procedural safeguards outlined in the Code of Criminal Procedure (CrPC) to prevent arbitrary arrests.

Comparison: Police vs. GST/Customs Officers

Criteria	Police Officers (CrPC Section 41)	GST/Customs Officers
Basis of Arrest	Suspicion of an offence	“Reason to believe” based on evidence
Need for FIR	Not always required	FIR is not mandatory before arrest
Written Grounds for Arrest	Not mandatory	Mandatory before arrest

 

Legal Framework Governing Arrests

• Customs Act: Arrests without a warrant are permitted for cognizable offences like smuggling or duty evasion exceeding ₹50 lakh, whereas non-cognizable offences require prior approval from a Magistrate.
• CGST Act: Offences are categorized as cognizable or non-cognizable, depending on the extent of tax evasion.
• CrPC Sections 4 & 5: Apply to all arrests unless specific provisions in special laws override them.

Supreme Court Rulings

1. Officers Possess Police-Like Powers: Authorities under the Customs and CGST Acts have the power to investigate, arrest, and seize assets similar to police officers.
2. Must Follow CrPC Restrictions: GST and Customs officials must adhere to procedural safeguards under the Criminal Procedure Code, 1973.
3. Extension of PMLA Safeguards: The Supreme Court has applied procedural protections from the Prevention of Money Laundering Act (PMLA), 2002, to prevent misuse of arrest powers.

Mandatory Safeguards for Arrests

• Evidence-Based Arrests: Officials must have sufficient material evidence, not just suspicion, before making an arrest.
• Extension of DK Basu Guidelines (1997): Arresting officers must maintain detailed records and wear proper identification for accountability.
• Written Justification: Arrests must be documented with written reasons to ensure transparency.
• Family Notification: The arrested individual’s family or an authorized person must be informed immediately.
• Right to Legal Representation: The detainee has the right to consult a lawyer, who must be present during interrogation.
• Magistrate Oversight: The arrested person must be produced before a Magistrate within 24 hours.
• Anticipatory Bail Allowed: Individuals facing GST and Customs-related charges can seek anticipatory bail to prevent unjust detention.
• No Forced Tax Payments: Tax authorities cannot coerce individuals into making payments under the threat of arrest.