GST officers to strictly follow established guidelines and instructions while exercising powers under Section 70

Facts of the Case:- The petitioner was interrogated until past midnight by a GST officer and allowed to leave only after his statement was recorded to the officer's satisfaction. The petitioner contended that this practice violates the right to privacy and protection against self-incrimination.

The representative on behalf of the Petitioner stated that “The GST Intelligence and Investigation Manual, 2023, provides detailed procedures for interrogation and recording statements, emphasizing statements should be recorded during office hours unless exceptional circumstances justify otherwise. Also, CBIC’s guidelines stress that summons should be issued as a last resort, respecting the time of appearance, and statements should preferably be recorded during office hours.

CBIC Instructions on Summons states as under:

• Summons should not be used routinely, especially for senior officials, and should be issued judiciously.
• Summons should indicate whether the person is summoned as an accused, co-accused, or witness.
• Repeated summons should be avoided, and the officer issuing the summons must be present during the scheduled time.

Further stated that Supreme Court's interpretation in “Vijay Madanlal Choudhary v. Union of India” and Telangana High Court's decision in “P.V. Ramana Reddy v. Union of India” state that officers under PMLA and GST are not police officers, and statements made under summons are not considered confessions. Also, The Bombay High Court in “Ram Kotumal Issrani v. Directorate of Enforcement” ruled that a person summoned under PMLA is not considered detained or an accused until officially arrested.

Held that:-

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. 

The Court held that the GST officers must follow the guidelines and instructions while summoning individuals under section 70 of the GST. The case is closed with a directive for strict compliance with the guidelines issued by the Commissioner (GST-Investigation) and the CBIC.

To read the complete judgment 2024 Taxo.online 1140