2021 (8) TMI 889 - HC - GST

Detention of petitioner - Section 132 of the Gujarat Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 read with Section 120B of the Indian Penal Code - HELD THAT - This Court finds that the State Authorities can not be permitted to resort to the stringent provisions like detention under the Prevention of Anti Social Activities Act against the petitioners. The State is restrained from resorting to the said option against the petitioners in these cases. Petition allowed.

Summary

Issues:
Detention under PASA in connection with GST Act violations, response from State Authorities regarding detention proposal, lack of response from Finance Department of State, restraining State Authorities from resorting to PASA.

Analysis:

1. The petitioners were facing apprehended detention under PASA due to a complaint filed by the State Tax Department under various sections of the Gujarat Goods and Services Tax Act, 2017, and Central Goods and Services Tax Act, 2017 along with the Indian Penal Code. The Court granted protection to the petitioners based on the information provided.

2. The Court highlighted the issue of whether the threat of detention under PASA should loom over the trader community in cases of GST discrepancies. It questioned the timing of such decisions and sought a response from the State Authorities. The State confirmed the completion of the investigation and the filing of a charge-sheet, mentioning the existence of multiple offenses against one of the petitioners.

3. Despite the Court's query, the Finance Department of the State did not respond, and instead, the Gujarat Goods and Services Tax Department stated in affidavits that no proposal had been made to detain the petitioners under PASA. The Court expressed concern over leaving the traders in uncertainty and emphasized the need to address such situations, especially in the post-COVID economic recovery phase.

4. The Court observed that the lack of a clear response from the competent Authority and the continued threat of detention indicated a problematic situation for the traders. It stressed that citizens should not be left in uncertainty and that such circumstances should not persist, particularly when the state and the economy are striving to recover from the impact of the pandemic.

5. After hearing arguments from both sides and reviewing the evidence, the Court concluded that the State Authorities should not resort to stringent measures like detention under PASA against the petitioners in the given circumstances. Therefore, the Court restrained the State from pursuing such an option against the petitioners, emphasizing the need to avoid such drastic measures.

6. As a result of the above analysis and considerations, the Court allowed the petitions in favor of the petitioners, providing relief by restraining the State Authorities from implementing detention under PASA in the cases related to GST Act violations.