This Judgment has once again put the question mark on the authority of Goods & Service Tax (GST) officials’.The Honourable Gujarat High Court has constricted the concerned GST Official and department for taking the law into their hands and likened it to dacoity.
This constriction is with respect to a petition filed by an individual Rakesh Sarasvadiya (businessman) from Morbi (Gujarat), whose truck with goods was detained on February 16 by GST Officials for non payment of tax dues.
The series of events started when a high ranking Official i.e. Assistant Commissioner, on non-payment of dues by a businessman Rakesh Sarasvadiya, seized the businessman’s truck with goods.
Then the harassment of the officials started — The GST flying squad summoned him in the GST office of Ahmedabad and detaining him for 2 days along with the seizure of his SUV, seven mobile phones and three diaries before raiding the businessman’s premises in Rajkot and Morbi.
Thereafter businessman approached the High court of Judicature for the release of his SUV and mobile phones. In relief, his truck was released after the businessman paid the due amount that was levied on him.
When the honourable judges came to know that the seizure has been done by the assistant commissioner (an officer below the rank of joint commissioner) and that too when he is not authorized by the provision of the GST Act to make an aforesaid seizure, they questioned the state government what the court should do with the officer.
“The bench of Chief Justice Vikram Nath and Justice R M Chhaya commented that This is pure dacoity.”
“Justice Chhaya said My Lord is absolutely right in using this word dacoity.”
“The Chief Justice commented that The question is who can make a raid and who can make a seizure? If somebody is not authorized to carry out the raid and seizure enters my house, then it is trespassing. That is robbery. It is dacoity if more than five people are there or it is a robbery.”
At Last, The state government said that it is ready to release the SUV. The honourable court asked it to do the mentioned task within a week. The reason being, the concerned GST officer who seized the goods was down by Covid-19.
Consequently, The court has sought a reply from the tax department in two weeks and has posted a hearing after the summer vacation.
