In a landmark decision, the Jharkhand High Court has unequivocally stated that GST officers must refrain from compelling individuals summoned under GST to provide statements beyond official working hours.
The division bench, composed of Acting Chief Justice Shree Chandrashekhar and Justice Navneet Kumar, articulated with clarity, “It is our firm conviction that GST officials should neither mandate nor coerce individuals summoned to offer statements after the designated office hours.”
Counsel for the petitioner, Salona Mittal, invoked Section 50 of the Prevention of Money-Laundering Act, 2002, drawing parallels to Section 70 of the GST. Mittal referenced the Supreme Court’s interpretation in the seminal case “Vijay Madanlal Choudhary v. Union of India” (2022 SCC OnLine SC 929). The apex court had discerned that officers under the PMLA are not equivalent to police officers and do not wield powers under the Code of Criminal Procedure. It was determined that individuals summoned under Section 50 are not deemed accused, and their statements do not constitute confessions, thus they are not shielded by Article 20(3) of the Constitution.
Mittal further highlighted the FAQs on Goods and Services Tax available on the CBIC website, which stipulate guidelines for issuing summons and outline the necessary precautions. Additionally, the GST Intelligence and Investigation Manual, 2023, meticulously delineates procedures for interrogations and the recording of statements, underscoring the imperative that such activities occur during office hours.
The Court took cognizance of the GST Intelligence and Investigation Manual, 2023, which elaborates on procedures for interrogation, statement recording, preparation, questioning techniques, managing hostile witnesses, retraction, judicial interpretations, and necessary precautions. Specifically, clause (iv) to paragraph 5.142 of the manual mandates that statements should be recorded within office hours.
Nevertheless, the Court acknowledged the interpretation by the Commissioner (GST-Investigation) regarding the term “exception” in clause (iv), permitting after-hours statements in exceptional scenarios, such as the risk of absconding or imminent arrests.
Ultimately, the Court directed GST officers to scrupulously follow the guidelines and instructions issued by the Commissioner (GST-Investigation) and the CBIC when summoning individuals under Section 70 of the GST Act.