Search, Seizure and Arrests by GST Dept should not be based on apprehension and flimsy grounds

No. PR- 060
July 23, 2021
New Delhi

Search, Seizure and Arrests by GST Dept should not be based on apprehension and flimsy grounds

“Proper Due-Diligence should be done before initiating Investigation, Search, Seizure and Arrest provisions under the GST Laws said Mr. Bimal Jain, Chairman, Indirect Taxes Committee here today.

He believes that the meaning of the word “reason to believe” as giving power to the proper GST officer under relevant sections of the GST laws should be supported and substantiated by the solid background and facts of the case wherein Investigation, Search, Seizure and Prosecution are initiated by the GST Dept. It should not be based on apprehension and flimsy grounds that someone is evading taxes. There must be proper due-diligence exercise, proper checking, and verification before initiating any search and seizure activities by the GST Dept, said by Mr. Jain.

Mr. Pradeep Multani, Senior Vice President, PHD Chamber at the Webinar said that It is well-settled law that search and seizure being an inroad on the fundamental right of citizen which adversely affects his reputation and paralyze his business, therefore, while exercising such powers, the authorities should be rather careful and cautious and must exercise it strictly under the authority of the law.

Tax experts who deliberated on the finer aspects of the Search, Seizure, Arrests, Recovery and Provisional attachment – Intricacies and Way Forward included Mr. Sudipta Bhattacharjee, Partner, Khaitan & Co.; Mr. Dharnendra Kumar Rana, Partner, NITYA Tax Associates and ; Mr. Shivam Mehta, Partner, Lakshmikumaran & Sridharan.

The Webinar concluded with an extensive discussion of more than 3 hours with the participation of more than 700 delegates. PHDCCI’s session was supported by DLF India; Multani Pharmaceuticals; UFLEX; JK Tyre & Industries; Marble City; Paramount Cables; SMC Investments and Advisors; Blossom Kochhar Aroma Magic; Comtech Interio; DCM Shriram Industries; Radico Khaitan; R.E. Rogers India; Ajit Industries; Synergy Environics; Timberworkz; Jindal Stainless; P S Bedi & Co; IFFCO and Hindware.


Media Division

PHD Chamber of Commerce and Industry