Don't Use Threats During Search And Seizure To Recover GST: Supreme Court

The bench said there is no provision under the GST Act which empowers the authorities to exert force for payment of outstanding dues.

The Supreme Court on Wednesday directed the Centre not to use "threat and coercion" during search and seizure operations against traders for recovery of Goods and Services Tax (GST) and instead persuade them to clear the dues voluntarily.

A bench of Justices Sanjiv Khanna, MM Sundresh and Bela M Trivedi, which is examining various provisions of the GST Act, said there is no provision under the law which empowers the authorities to exert force for payment of outstanding dues.

"There is no power under the Act to compel any person to pay the tax liability during the search and seizures. Ask your department that the payment should be voluntarily and there should not be use of any force. You have to give three-four days' time to the alleged offender to consult, think and clear the liability. It should be voluntary and there should not be use of any threat or coercion," the bench told Additional Solicitor General SV Raju, appearing for the Centre.