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On May 27, 2019, the Vacation Bench comprising of GJ Ranjan Gogoi and Aniruddha Bose J., dismissed the appeal from Telangana High Court which upheld the Power of Arrest by Goods and Services Tax Authorities. Section 69(1) of the Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017) empowers the Commissioner to issue arrest warrant if a person has committed cognizable and non-bailable offence, High Court rejected the plea that the arrest before adjudication or assessment is invalid.
However, Bombay High Court took a contrary view that arrest can be made according to CrPC, thereby having a nullifying effect on Section 69(1) of the Act.
The Vacation bench then issued notice to Centre and sought its reply, for which the Solicitor General Thushal Mehta pointed out the new trend of tax evaders seeking protection from arrest by a writ petition, also pleaded the Bench to refer to Three-Judge Bench for a authoritative pronouncement.
The Centre also stated on the petition that there is an emerging trend of short-circuiting the procedure established by law by filing writ petitions, challenging the Constitutional validity of each and every provision, then being investigated, later seeking regular or custodial bail.
The Bench said that different High Court had taken contrary views, thus it need to decide the question of law on the power of arrest of tax evaders under CGST Act.
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