Power Of Arrest – Need For A Balanced Act

The power of arrest is in a fiscal statute such as GST laws and is provided as a mechanism for investigation of tax evasion and enforcement of the law. The CGST Act¹ provides for powers for conducting inspection, search, and arrest. While fiscal offenses are typically resolved through fines and penalties, the question arises as to whether arrest provisions are necessary in specific offences of tax evasion with clear intention to de-fraud the government exchequer. It is absolutely clear that intention of the legislature while enacting the GST laws which includes powers of arrest, was not to focus on provisions that were punitive in nature, but the emphasis has always been on preventive provisions.