1. Power of arrest under Section 91 of the Finance Act, 1994 — Requirement to follow procedure under Section 73A(3) and (4). (Para 2 )
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2019 Supreme(SC) 1423
SUPREME COURT OF INDIA
A.K. SIKRI, S. ABDUL NAZEER, JJ.
Union of India & Ors. - Appellant
Versus
M/s. Make My Trip (India) Pvt. Ltd. - Respondent
Civil Appeal Nos. 8080, 8081, 8082 of 2018
Decided On : 23-01-2019
Important Points
The mandatory procedure in Section 73A(3) and (4) of the Finance Act, 1994 must be followed before exercising the power of arrest under Section 91.
Subject
Taxation Law - Finance Act, 1994
Act Referred
FINANCE ACT: S.91, S.73(a)(3), S.90
Headnote
Section 91 - Finance Act, 1994 - The court held that the power of arrest under Section 91 of the Finance Act, 1994 can only be exercised after following the procedure set out in Section 73A(3) and (4) of the said Act.
Fact of the Case:
The issue was whether the power of arrest under Section 91 of the Finance Act, 1994 can be exercised without following the procedure as set out in Section 73A(3) and (4) of the said Act.
Finding of the Court:
The High Court decided that it is mandatory to follow the procedure contained in Section 73A(3) and (4) of the said Act before going ahead with the arrest of a person under Sections 90 and 91. The Supreme Court agreed with this conclusion and dismissed the appeals.
Issues: Interpretation of the power of arrest under Section 91 of the Finance Act, 1994 and whether the procedure in Section 73A(3) and (4) must be followed.
Ratio Decidendi: The court held that the procedure contained in Section 73A(3) and (4) of the Finance Act, 1994 is mandatory before exercising the power of arrest under Section 91.
Final Decision: The appeals were dismissed, affirming the requirement to follow the procedure in Section 73A(3) and (4) before exercising the power of arrest under Section 91 of the Finance Act, 1994.
Legal Category Hierarchy
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tax law
-
finance act, 1994
-
arrest and procedure
- mandatory compliance (Para 2)
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arrest and procedure
-
finance act, 1994
Advocates:
Advocate Appeared:
For the Appellant : Mr. K. Radhakrishnan, Sr. Adv. Mr. Rupesh Kumar, Adv. Ms. Nisha Bagchi, Adv. Mr. Ritesh Kumar, Adv. Mr. B. Krishna Prasad, Mrs. Anil Katiyar, AOR
For the Respondent: Mr. V. Sridharan, Sr. Adv. Mr. L. Badri Narayanan, Mr. Aaditya Bhattacharya, Mr. Yogendra Aldak, Mr. Manish Rastogi, Mr. Victor Das, Ms. Apeksha Mehta, Advs. Mr. R. Parthasarathy, AOR Mr. Praveen Swarup, AOR
Advocate Appeared:
For the Appellant : Mr. K. Radhakrishnan, Sr. Adv. Mr. Rupesh Kumar, Adv. Ms. Nisha Bagchi, Adv. Mr. Ritesh Kumar, Adv. Mr. B. Krishna Prasad, Mrs. Anil Katiyar, AOR
For the Respondent: Mr. V. Sridharan, Sr. Adv. Mr. L. Badri Narayanan, Mr. Aaditya Bhattacharya, Mr. Yogendra Aldak, Mr. Manish Rastogi, Mr. Victor Das, Ms. Apeksha Mehta, Advs. Mr. R. Parthasarathy, AOR Mr. Praveen Swarup, AOR
Table of Contents
2. Whether the power of arrest under Section 91 of the Finance Act, 1994 can be exercised without following the procedure in Section 73A(3) and (4). (Para 2 )
3. The procedure prescribed under Section 73A(3) and (4) of the Finance Act, 1994 is mandatory before exercising arrest powers under Sections 90 and 91. (Para 2 )
4. Mandatory compliance with the procedure set out in Section 73A(3) and (4) of the Finance Act, 1994 is a prerequisite for arrest under Sections 90 and 91. (Para 2 )
5. Appeals dismissed. (Para 3 )
6. Is the procedure under Section 73A(3) and (4) of the Finance Act, 1994 mandatory before making an arrest under Section 91?
Yes, it is mandatory to follow the procedure contained in Section 73A(3) and (4) of the Finance Act, 1994 before proceeding with the arrest of a person under Sections 90 and 91. (Para 2 )
ORDER :
1. Heard learned counsel for the parties at length.
2. The issue is as to whether the power of arrest under Section 91 of the Finance Act, 1994 ('the said Act') can be exercised without following the procedure as set out in Section 73A(3) and (4) of the said Act. The High Court has decided, after detailed discussion, that it is mandatory to follow the procedure contained in Section 73A(3) and (4) of the said Act before going ahead with the arrest of a person under Sections 90 and 91. We are in agreement with the aforesaid conclusion and see no reason to deviate from it.
3. Accordingly, these appeals are dismissed.
