Supreme Court: In a significant case, the Division Bench of M.R. Shah* and B.V. Nagarathna, JJ., allowed the PIL filed by a Charter Accountant and directed the Union Government to consider implementing a uniform digital Document Identification Number (DIN) for all communications sent by the State Tax Officers to taxpayers and other persons concerned in all the States in the country.
The petitioner, a Charted Accountant by profession has filed the instant public interest ligation (PIL) to seek an appropriate order or direction to the respondents — respective States and the GST Council to take necessary steps to implement a system for electronic (digital) generation of a DIN for all communications sent by the State Tax Officers to taxpayers and other persons concerned. The petitioner had also sought for the directions to the GST Council to consider and take a policy decision directing all the States in the country to implement DIN system.
The petitioner submitted that implementing a system for the electronic (digital) generation of a DIN, will usher in transparency and accountability in the indirect tax administration and at the same time may prevent any abuse by the departmental officers of pre-dating communications and ratifying actions by authorisations subsequently made out in the files.
Though, the Union of India did not dispute that implementing a system for the electronic (digital) generation of a DIN, will bring transparency and accountability in the indirect tax administration, it argued that so far as the implementation of the system for electronic (digital) generation of a DIN for all communications sent by the State Tax Officers to taxpayers was concerned, the same was to be done and/or implemented by the States concerned.
The Court agreed that it cannot be disputed that implementing the system for digital DIN for all communications sent by the State Tax Officers to taxpayers and other persons concerned would be in the larger public interest and enhance good governance by bringing transparency and accountability in the indirect tax administration, which are vital to efficient governance. Considering that in view of the implementation of the GST and as per Article 279-A of the Constitution, the GST Council is empowered to make recommendations to the States on any matter relating to GST, the Court opined that the GST Council can also issue advisories to the respective States for implementation of the DIN system.
Therefore, the Court directed the Union of India/GST Council to issue advisory/instructions/recommendations to the respective States regarding the implementation of the system of digital DIN in the indirect tax administration, which is already being implemented by the States of Karnataka and Kerala. The Court further directed the States concerned to consider implementing the system for digital DIN at the earliest.
[Pradeep Goyal v. Union of India, 2022 SCC OnLine SC 949, decided on 18-07-2022]
*Judgment by: Justice M.R. Shah.
Advocates who appeared in this case :
For the Petitioner: Advocate Charu Mathur;
For the Union of India: ASG Balbir Singh.
*Kamini Sharma, Editorial Assistant has put this report together.