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2019 (11) TMI 396 - HC - GSTJurisdiction - Illegal import - powers of police officers - applicability of GST ACt or Customs Act - seizures - release of the seized goods - Power, scope and jurisdiction of the police in investigating offences which may be covered by more than one statute or by special statute - business of sale and supply of arecanuts (betel nuts) Whether the state police has power to investigate and effect seizure of goods for alleged forgery of documents in connection with certain transactions which can be relatable either to taxation statutes or Customs Act? HELD THAT:- Since the Police initially intercepted and seized the trucks suspecting evasion of tax under the GST regime, and as the Central Goods and Services Act, 2017 and the corresponding State law i.e. the Assam Goods and Services Tax Act, 2017 are also comprehensive and self-contained Acts, these coercive actions could have been done by the authorities under the CGST Act or the AGST Act. The AGST Act empowers the proper officer not below the rank of Joint Commissioner to authorise any officer of State Tax to inspect, search, seize, and arrest persons as provided under Chapter XIV of the State Act. This Court is of the view that though the Customs Act or the Central Goods and Services Act, 2017 or the Assam Goods and Services Act, 2017 are self-contained Acts under which forgery or producing false documents are also offences, it cannot be said that the provisions of Indian Penal Code cannot be applicable as there is nothing under the Customs Act or the AGST Act that the provisions of the IPC cannot be invoked. There will be a bar only in respect of offences that are specifically mentioned in the special acts. Applicability of procedural law as contained in the Code of Criminal Procedure - HELD THAT:- Section 4(2) CrPC provides that all offences under any other law shall be investigated, inquired into, tried, and otherwise dealt with according to the provisions of the CrPC, but shall be subject to any enactment for the time being in force regulating the manner or place of investigating, inquiring into, trying or otherwise dealing with such offences. Section 5 of the CrPC further provides that nothing contained in the Code shall, in the absence of a specific provision to the contrary, affect any special or local law for the time being in force, or any special jurisdiction or power conferred, or any special form of procedure prescribed, by any other law for the time being in force - What Sections 4 and 5 provide is that the Code shall continue to be applicable to special laws also, subject to the procedure prescribed under the special laws and if any special procedure is laid down under the special laws, such procedure would not be affected by the provisions of CrPC. Thus, the provisions of CrPC would continue to be applicable to proceedings under Customs Act or CGST Act/AGST Act, subject to the special procedure provided therein. However, this has no relation to the applicability of the provisions of IPC for offences committed under the said Code. This Court would hold that the Assam Police would have jurisdiction to investigate certain offences under the Indian Penal Code, if made out, even if these may be also offences under the CGST Act, 2017 or AGST Act or the Customs Act,1962 - However, as provided under Section 26 of the General Clauses Act, no one will be liable to be punished twice for the same offence. Whether the Police can conduct a roving enquiry? - HELD THAT:- The principal offence seems to be illegal activity of smuggling covered by the Customs Act, 1962 and the offence of forgery of documents as alleged is a part of the larger illegal activity of smuggling. It is, therefore, apparent that if the petitioners are accused of forging documents, these are ancillary acts to accomplish the main illegal activity of smuggling areca nuts. It can, therefore, be said that the principal criminal activity engaged by the petitioners is smuggling of areca nuts from a foreign country, to accomplish which they also committed certain other offences like forgery of documents. Forgery of documents is thus an ancillary act to the principal act of smuggling areca nuts. In such an event, the customs authorities would be primarily responsible for investigation and prosecution of the petitioners. It would be appropriate for the police to hand over the investigation to the customs authorities as they cannot continue the investigation as far as the allegation of smuggling against the petitioners is concerned. Similarly, for the same reasons, the police authorities would have no jurisdiction and power to investigate as regards violation of the provisions of the taxation laws as the same are governed by the provisions of the CGST Act, 2017 or AGST Act, 2017 under which there are separate investigative agencies. In the present case, unless the investigation already undertaken throws up new leads to other offences under the Penal Code as mentioned above, the Police ought not conduct a roving enquiry, otherwise, it would be susceptible to the charge of misuse of the criminal investigating power. As provided under Sections 154 and 155 of the Code of Criminal Procedure Code, the criminal justice system can be set into motion by the police on getting information as to cognisable/non cognisable offence and proceed accordingly, and not otherwise. This Court is accordingly, of the view that even if the different statutes permit independent and separate investigations, if such investigations involve coercive actions similar to as contemplated under the CrPC, the investigations ought to be undertaken simultaneously, otherwise, there would be a distinct possibility of infraction of the precious rights of an accused as guaranteed under Article 14, 21 and 22. This Court would hold that the initial seizure of areca nuts and the trucks by the Assam Police cannot be said to be without authority. But in view of the subsequent disclosures that these areca nuts were smuggled and transported by the trucks, the Customs authorities under the Customs Act, 1962 would now be the proper authorities to investigate the alleged offences and accordingly the police should hand over the seized areca nuts and the trucks to the Customs authorities for further investigation. If the Customs authorities need the help and assistance of the police, nothing prevents them from doing so. Petition disposed off.
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