GST Search Grievance Cannot Invoke Criminal Jurisdiction Under Section 528 BNSS: Madras High Court

The Madras High Court on 4 August held that a grievance concerning search or inspection by Goods and Services Tax (GST) authorities cannot be brought within the scope of Section 528 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), merely because tax officials are empowered to conduct search and seizure while following criminal procedure.

Justice D. Bharatha Chakravarthy declined to entertain the petition filed by B. Rajkumar, who carries on business as Maharaja Jewellers in Chennai, seeking a direction to the authorities not to harass him under the guise of enquiry or investigation. The Bench held:

“Merely because the power to conduct search or seizure is given to the tax officials and they have to follow the procedure as laid down under the Cr.P.C. or BNSS, and the same, by itself, will not make the instant case a candidate for exercise of power under Section 482/528 BNSS,”

Rajkumar alleged that the Commercial Tax authorities were visiting his premises without following the procedure prescribed under the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act).

Before the Court, he relied on Section 67(10) of the TNGST Act, which provides that search and seizure by tax officials must be carried out in accordance with the procedure prescribed under the Code of Criminal Procedure (CrPC) or the BNSS.

The Court, however, did not examine or decide whether the tax authorities had actually violated the procedure prescribed under the GST law. It noted that the petitioner's grievance essentially concerned search or inspection carried out by tax officials and held that such a grievance could not be examined under the criminal jurisdiction invoked through the petition.

Further, the Bench said that if Rajkumar believed that the authorities had taken any illegal action, he was free to challenge it before the appropriate forum. If any action amounted to a criminal offence, he could also lodge a specific complaint.

Similarly, if there was any violation of the provisions of the GST Act, he could approach the higher tax authorities or file an appropriate petition under Article 226 of the Constitution.

Accordingly, the High Court declined to entertain the relief sought under Section 528 BNSS and disposed of the Criminal Original Petition.

For Petitioner: M/s. A.Neeraj, Advocate 

For Respondent: Mr. M.Mohamed Riyaz, Government Advocate