SC asks Centre to not use "threat and coercion" in GST recovery operations
Supreme Court on Wednesday instructed the Centre to refrain from employing "threat and coercion" tactics during search and seizure operations aimed at recovering Goods and Services Tax (GST) from traders. The bench, comprising Justices Sanjiv Khanna, MM Sundresh, and Bela M Trivedi, who are reviewing different sections of the GST Act, emphasised that the law does not grant authorities the power to use force to collect outstanding dues.
«There is no power under the Act to compel any person to pay the tax liability during the search and seizures. Request your department to ensure that the payment is made voluntarily without any use of force. A period of three to four days must be provided to the accused individual to seek advice, contemplate, and settle the liability. It should be voluntary and there should not be use of any threat or coercion,» the bench told Additional Solicitor General SV Raju, appearing for the Centre.
Raju did not rule out the possibility of using force in the past but mentioned that usually the payment during search and seizure is voluntary.
«Yes, there is possibility of both ways but mostly the payment is done voluntarily or after a few days as the alleged offender wanted to consult his advocate for payment of liability. There may have been some instances in the past, but that is not the norm,' he said during the day-long hearing.
The bench noted that several petitioners have alleged that authorities resorted to intimidation and exerted pressure during search and seizure operations.
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