Supreme Court Ruling on Customs Law and CGST Act

The Supreme Court has upheld the constitutional validity and prosecution provisions under the customs law and the Central Goods and Services Tax (CGST) Act. However, it emphasized the applicability of the criminal law provisions (Bharatiya Nagarik Suraksha Sanhita) concerning the rights of the accused in cases of arrests under both laws.

Key Provisions Upheld

• Section 69 and Section 70 of CGST Act
  • Section 69 pertains to the power of arrest.
  • Section 70 involves summoning a person to give evidence.

Anticipatory Bail and Arrest Procedures

• Applications for anticipatory bail can be approved, which may include conditions.
• Filing a First Information Report (FIR) is not mandatory before applying for anticipatory bail, as long as there is a reasonable basis for apprehending arrest.
• Customs officers are required to inform the arrestee about the grounds of arrest.
• They must maintain records of their statutory functions, including: 
  • Name of the informant and the person violating the law.
  • Nature of information received.
  • Time of arrest and seizure details.
  • Statements recorded during the detection of the offence.

Enforcement Under GST Acts

• Arrests should be based on credible material rather than routine practices.
• Customs Act and GST laws are not comprehensive codes regarding arrest, search, and seizure.
• Provisions of the Code of Criminal Procedure are applicable unless expressly excluded by these Acts.

Voluntary Payments and Duties of Officers

• Voluntary tax payments under Section 74(5) of the GST Acts should not be made under duress.
• Referring to Section 41-B of the Code of Criminal Procedure: 
  • Procedures of arrest and duties of the arresting officer should be followed.
  • Though it refers to police officers, it equally applies to customs officers under these circumstances.

The Supreme Court also clarified that customs officers are not police officers.