BNS Prosecution for Delayed GST/TDS Deposit Quashed | HC

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BNS Prosecution for GST Default

Case Details: Tanveer Asharaf vs. State of U.P. - [2026] 187 taxmann.com 1015 (Allahabad) 

Judiciary and Counsel Details

  • Saurabh Srivastava, J.
  • Pankaj Kumar Gupta for the Applicant.

Facts of the Case

The applicant, a Gram Panchayat Secretary, was prosecuted under Section 316(5) of the Bharatiya Nyaya Sanhita (BNS) on allegations of delayed or non-deposit of GST/TDS deducted from payments relating to Gram Sabha development works during the financial year 2017-18. Following a complaint before the Lokayukta, an FIR was registered, a charge sheet was filed, and cognizance was taken under the BNS. The applicant contended that the amount had subsequently been deposited and that the allegations involved only delayed deposit of GST/TDS without any allegation of embezzlement, forgery or dishonest misappropriation. The applicant further challenged the prosecution on the ground that the GST Act constituted a complete code governing such contraventions and that the BNS could not be applied retrospectively to acts pertaining to 2017-18.

High Court Held

The High Court held that the GST Act is a complete and self-contained statute providing an exhaustive mechanism for adjudication, interest, penalty, prosecution and compounding in cases relating to delayed or non-deposit of GST or TDS. It was observed that, in the absence of allegations of embezzlement, forgery, dishonest misappropriation or wrongful gain, recourse to the general penal provisions of the BNS was legally unsustainable. The Court further held that the alleged acts pertained to the financial year 2017-18, whereas the prosecution had been initiated under the Bharatiya Nyaya Sanhita, 2023, which was not in force at the relevant time. Accordingly, the charge sheet, cognizance order and criminal proceedings were quashed, while clarifying that the authorities were at liberty to proceed against the applicant under the provisions of the GST Act, if so advised.

List of Cases Reviewed

  • Sharat Babu Digumarti v. Government of NCT of Delhi [2017] 2 SCC 18 (para 16) and Deepu v. State of U.P. 2024 (8) ILRA 903 (para 16), followed

List of Cases Referred to

  • Sharat Babu Digumarti v. Government of NCT of Delhi [2017] 2 SCC 18 (para 6) and Deepu v. State of U.P. 2024 (8) ILRA 903 (para 6).

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied