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GST: Firms challenge constitutional validity of arrest rules in top court

Counsel for companies raises concerns about whether or not well accepted, judicially tested, fair and proper procedures are being followed during such arrests

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The Section 69 of the Central GST Act empowers the GST commissioners to arrest a person if he has “reasons to believe” that the person has claimed fraudulent ITC

Indivjal Dhasmana New Delhi
Companies have argued against the constitutional validity of arrest provisions under the goods and services tax (GST) laws in their present form in the Supreme Court. 

The court took up the matter of arrest provisions and applicability of  the  Criminal Procedure Code (CrPC) to the Customs Act, GST and the Prevention of Money Laundering Act (PMLA) and other allied laws on Tuesday and arguments continued till Thursday too. 

Appearing for companies, Abhishek Rastogi said in the court that the sheer magnitude of GST arrests that are happening in the country raises various concerns. 

There are obvious concerns regarding revenue leakage