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TMI Blog2024 (4) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... in the present matter. We have accepted the request and hereby dispose of the appeal. 3. The portion sought to be expunged is the observation of the High Court that the good faith clause in Section 157 of the GST Act1, may not be available to the officers of the State as their conduct, according to the High Court, "may not" justify protection. We have expunged that portion of the order because the context as well as the conclusions of the High Court are wrong. We will explain this after indicating the relevant facts. 4. This civil appeal arises out of an interim order passed by the High Court of Gujarat [In Special Civil Application No. 18463 of 2019, order dated 24.12.2019.] in a writ petition filed by the respondent seeking a direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sound a word of caution to the authorities exercising powers under the GST Acts. Sub-section (2) of section 157 of the GST Acts says that no suit, prosecution or other legal proceedings shall lie against any officer appointed or authorized under the Act for anything which is done or intended to be done in good faith under the Act or the rules made thereunder. An action like the present one which is not contemplated under any statutory provision and which infringes the fundamental rights' of citizens under article 21 of the Constitution of India may not be protected under this section. An action taken may be said to be in good faith if the officer is otherwise so empowered and he exceeds the scope of his authority. However, in a case like th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by their very nature, that far, and no further. The scope and ambit of good faith has been explained in a number of decisions of this Court [See Goondla Venkateswarlu v. State of AP, (2008) 9 SCC 613, paras 22 and 23; Army Headquarters v. CBI (2012) 6 SCC 228, paras 69-78.], which need not be elaborated herein again. 9. A good faith clause in a statute will therefore be a defense. If successfully pleaded, it not only legitimises the action but also protects the statutory functionary from any legal action. If a statutory functionary invokes the defence of good faith in a suit, prosecution or other legal proceedings initiated against him, it is for the court or a judicial body to consider, adjudicate, and determine whether the claim that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is equally entitled to take a defense of good faith. It is for the court to adjudicate and decide. 12. In view of the above, we expunge paragraph 28 and dispose of the appeal. ---------------- Notes: 1. "157. Protection of action taken under this Act.-(1) No suit, prosecution or other legal proceedings shall lie against the President, State President, Members, officers or other employees of the Appellate Tribunal or any other person authorised by the said Appellate Tribunal for anything which is in good faith done or intended to be done under this Act or the rules made thereunder. (2) No suit, prosecution or other legal proceedings shall lie against any officer appointed or authorised under this Act for anythin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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