GST Evasion Matters cannot be investigated by other enforcement agencies like ED Or CBI

[Diksha Sabarwal]

Whether GST Evasion Matters can be investigated by Others Enforcement Agencies like CBI Or ED where in one case FIR has been filed and in other case FIR has not been filed as per High Court or Supreme Court Orders?

Please share some case laws to support your arguments.

 

[Sadanand Bulbule]

The GST Act is a custom-made law with its own built-in tax police, meaning the department can track, catch, and penalize evaders all on its own without needing outside law enforcement.

However there are couple of instances where ED has also taken up investingation under its domain.

[VENU K]

Allahabad High Court .... Govind Enterprises vs State Of U.P. And Others 2019 (6) TMI 55 - ALLAHABAD HIGH COURT. This contains a detailed discussion on the issue. It is definitely possible for other agencies to enquire. The following para in that judgement is relevant to understand the law

Section 26 of General Clauses. Act provides as follows:

"26. Provision as to offences punishable under two or more enactments.-- Where an act or omission constitutes an offence under two or more enactments, then the offender shall be liable to be prosecuted and punished under either or any of those enactments, but shall not be liable to be punished twice for the same offence."

In State of Rajasthan v. Hat Singh, 2003 (1) TMI 723 - Supreme Court, the apex court had the occasion to examine the provisions of section 26 of the G.C. Act with reference to the rule against double jeopardy enshrined under Article 20(2) of the Constitution of India and section 300 of the Code. The apex court in paragraphs 8 to 11 of its judgment, as reported held as follows:

"8. Article 20(2) of the Constitution provides that no person shall be prosecuted and punished for the same offence more than once. To attract applicability of Article 20(2) there must be a second prosecution and punishment for the same offence for which the accused has been prosecuted and punished previously. A subsequent trial or a prosecution and punishment are not barred if the ingredients of the two offences are distinct.

9. The rule against double jeopardy is stated in the maxim nemo debet bis vexari pro una et eadem causa. It is a significant basic rule of criminal law that no man shall be put in jeopardy twice for one and the same offence. The rule provides foundation for the pleas of autrefois acquit and autrefois convict. The manifestation of this rule is to be found contained in Section 26 of the General Clauses Act, 1897, Section 300 of the Code of Criminal Procedure, 1973 and Section 71 of the Indian Penal Code

[KASTURI SETHI]

The answer is in the affirmative but not in routine manner but in exceptional cases.

[Diksha Sabarwal]

Please share Supreme Court judgement where Allahabad HC decision was overturned and it was mentioned that GST Investigation will be carrieee out primarily by own department.

[Sadanand Bulbule]

Dear all

It is reported in today's leading news papers that, in Bengaluru CBI has taken up investigation of huge fraudulent evasion of GST by way of fake tax invoices, besides bribery incident. Meaning, ED & CBI can also investigate extreeme grave cases as clarified by Sri. Sethi Sir.

AI Summary

GST evasion investigations may involve other enforcement agencies in exceptional cases where distinct offences, such as bribery, are implicated.
GST evasion is primarily addressed through the specialised enforcement machinery under the GST law, but other enforcement agencies may enquire into exceptional serious matters involving offences within their respective domains, such as fake-tax-invoice activity and bribery. Where conduct constitutes offences under more than one enactment, prosecution may proceed under the applicable laws, subject to the bar against double punishment for the same offence. Double jeopardy does not prevent separate proceedings where the alleged offences contain distinct legal ingredients.