Consider the following statements: Statement-I: The Goods and Services Tax (GST) officers have the same powers as the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). Statement-II: The GST officers are police officers and can arrest individuals based on suspicion. Which one of the following is correct in respect of the above statements? |ForumIAS

Q. Consider the following statements:
Statement-I: The Goods and Services Tax (GST) officers have the same powers as the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).
Statement-II: The GST officers are police officers and can arrest individuals based on suspicion.
Which one of the following is correct in respect of the above statements?

[A] Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

[B] Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

[C] Statement-I is correct but Statement-II is incorrect

[D] Statement-I is incorrect but Statement-II is correct

Answer: C

Notes:

Explanations –

Statement I is correct. The Supreme Court ruled that GST officers must follow a “higher threshold” before making an arrest, similar to Enforcement Directorate (ED) officers under the Prevention of Money Laundering Act (PMLA). This means they must have a “reason to believe” that an offence has been committed rather than acting on mere suspicion. GST officers have the same powers as the ED under the Prevention of Money Laundering Act (PMLA).

Statement II is incorrect. The Supreme Court clarified that GST officers are not police officers and cannot arrest individuals based on suspicion like police officers under Section 41 of the Code of Criminal Procedure (CrPC). Instead, they must meet a stricter standard before making arrests.

Source: The Hindu

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