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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 ..... before the High Court, more so when the respondent has submitted that he is not interested in proceeding against the officers and seeks a quietus to the issue. The High Court was of the view that the protection contemplated under section 157 of the GST Act, which is in the nature of a good faith clause, may not be available to the officers - A good faith clause, explained in the vocabulary of the rights and duties regime, can be said to be a provision of immunity to a statutory functionary. Such provisions are in recognition of public interest in protecting a statutory functionary against prosecution or legal proceedings. This immunity is limited. It is confined to acts done honestly and in furtherance of achieving the statutory purpose and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal as it is represented to us that the respondent is not interested in initiating proceedings against the officers 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 Act 1 , 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 Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he officers is in paragraph 28 and it is relevant for us to extract the same. 28. Lastly the court may 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or other legal proceedings against officials exercising statutory power are therefore limited 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal remedies as are available to him, and in such proceedings the statutory functionary 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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