Potential contempt of court in arrest of Taxpayer by GST Officers: HC issue SCN

Mishal J Shah HUF (Keeyan Enterprises) Vs State of Maharashtra & ors. (Bombay High Court)

Bombay High Court examined the arrest of Mishal J Shah by state tax authorities, which occurred shortly after a court hearing on a related matter. The arrest, executed by Mr. Chandar T Kamble, Assistant Commissioner of State Tax, was authorized by Ms. Prerna Deshbhratar, Joint Commissioner of State Tax. Despite a summons issued on December 19, 2024, for Shah’s appearance on December 30, he was arrested early on December 20, prompting allegations of interference with the administration of justice. The Court observed that this action might constitute contempt of court, as Mr. Kamble had attended the prior day’s hearing and may have acted based on its proceedings.

The Court issued notices to Mr. Kamble and Ms. Deshbhratar, requiring them to explain their actions by January 15, 2025. It highlighted concerns about the arrest being used as an intimidation tactic against Shah for approaching the judiciary. Furthermore, the Court directed the Commissioner to resolve Shah’s objections regarding the tax matter by January 6, 2025, ensuring procedural fairness.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

1. Heard learned counsel for the parties.

2. Yesterday, after this matter was argued, at the request of Ms. Chavan, learned Additional Government Pleader for the Respondents-State, of which request was made on the instructions of Mr. Chandar Kamble, the Assistant Commissioner of State Tax (D-113), who was yesterday present in the Court, we adjourned the matter to today.