PROCEDURE FOR SANCTION OF PROSECUTION - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

11. PROCEDURE FOR SANCTION OF PROSECUTION 11.1. GST Investigation wing, CBIC has issued Instruction No. 04/2022-23 [GST Investigation], dated 01.09.2022 prescribing guidelines for launching of prosecution under the CGST Act, 2017. 11.2. Where during the course of investigation, arrest(s) have been made, all efforts should be made to file prosecution complaint in the Court within 60 days of arrest. The proposal of filing complaint in the prescribed format of investigation report should be forwarded to the competent authority (i.e., the sanctioning authority) within 50 days of arrest. The proposal shall be examined and decision as per Section 132 of the CGST Act, 2017 shall be taken. If prosecution sanction is accorded, he shall issue a sanction order along with an order authorising investigation officer (Superintendent) of the case to file the prosecution complaint in the competent court. 11.3. Officer in the rank of JC/ADC must ensure that all the documents /evidences and list of witnesses be kept ready before forwarding the proposal of filing complaint to the Pr. Commissioner/Commissioner or Pr. ADG/ADG of DGGI, as the case may be. 11.4. In cases where it is deemed fit to launch prosecution before adjudication of the case, the officer in the rank of JC/ADC or Jt. Director/Addl. Director, as the case may be, who supervised the investigation shall record the reason for the same and forward the proposal to the sanctioning authority. The decision of the sanctioning authority shall be informed to the adjudicating authority so that there is no need for him to examine the case again from the perspective of prosecution. 11.5. In other cases, the adjudicating authority should invariably indicate at the time of passing the order itself whether it considers the case fit for prosecution. Wherever SCNs have been issued by DGGI, the recommendation of adjudicating authority shall be sent to Pr. ADG/ADG of the Zonal Units concerned. 11.6. The sanctioning authority may suo moto take into consideration the seriousness of offence, examine whether the case is fit for sanction of prosecution, irrespective of whether the adjudicating authority has recommended for prosecution or not. 11.7. Once sanction for prosecution has been obtained, prosecution in the court of law should be filed as early as possible. Any delay beyond 60 days shall be brought to the notice of the sanctioning authority.