Supreme Court Upholds Validity of Arrests Under Customs, GST Laws with Safeguards
The Supreme Court has upheld the constitutional validity of arrest and prosecution provisions under the GST Act and the Customs Act while introducing safeguards against coercive actions. A Special Bench, led by Chief Justice Sanjiv Khanna, ruled that customs officials are not police officers and that those arrested under these laws will have legal protections.
The Court clarified that arrests cannot be used for tax recovery and that accused individuals can seek remedies under Article 226. It also overturned the MakeMyTrip ruling on quantification before arrest.
Experts see the decision as a balance between strict tax enforcement and taxpayer protection. The ruling mandates authorities to document their ‘reasons to believe’ before making arrests and allows anticipatory bail in GST cases. The final hearing is set for March 17.
