PRADEEP GOYALversusUNION OF INDIA

                        [2022] 6 S.C.R. 1143                             1143


                        PRADEEP GOYAL                                    A
                                  v.
                         UNION OF INDIA
                (Writ petition (Civil) No. 320 of 2022)
                                                                         B
                           JULY 18, 2022
         [M. R. SHAH AND B. V. NAGARTHNA, JJ.]
       Tax administration: GST Council – In the instant case,
petitioner filed writ petition seeking directions to respective states
and GST Council to implement a system for electronic (digital)           C
generation of Document Identification Number (DIN) for all the
communication sent to taxpayers and other concerned persons –
Held: Implementation of electronic generation of a DIN would be
in larger public interest and enhance good governance – As of
now, only two states have implemented electronic DIN system –            D
Art.279A of Constitution of India states that GST council is
empowered to make recommendation to the states on the matter of
GST – Council can also issue advisories to the respective states for
implementation of DIN system – Directions passed to the Union of
India/GST Council to issue advisory/instructions/recommendations         E
to respective states in regard to aforementioned system – Directions
passed to the concerned states to implement the system so as to
bring transparency and accountability in the indirect tax
administration – Guidelines/Directions.
      CIVIL ORIGINAL JURISDICTION: Writ Petition Civil No. 320           F
of 2022.
      Under Article 32 of The Constitution of India
      Ms. Charu Mathur, Adv. for the Petitioner.
     Balbir Singh, ASG, M. K. Maroria, Prahlad Singh, Mohd. Akhil,       G
Divyansh H. Rathi, Anmol Chandan, Naman Tandon, Shyam Gopal,
Samarvir Singh, Advs. for the Respondents.



                                                                         H
                                1143
1144             SUPREME COURT REPORTS                            [2022] 6 S.C.R.


 A           The Order of the Court was passed by
             M. R. SHAH, J.
              1. By way of this Writ Petition under Article 32 of the Constitution
       of India, the petitioner, a Chartered Accountant by profession, by way of
 B     present Public Interest Ligation has prayed for an appropriate writ, order
       or direction to the respondents – respective States and the GST Council
       to take all necessary steps to implement a system for electronic (digital)
       generation of a Document Identification Number (DIN) for all
       communications sent by the State Tax Officers to taxpayers and other
       concerned persons.
 C
              1.1 It is also prayed to direct the GST Council to consider and
       take a policy decision in respect of implementation of the DIN system
       by all the States.
             2. It is the case on behalf of the petitioner that by implementing a
 D     system for electronic (digital) generation of a DIN, it will usher in
       transparency and accountability in the indirect tax administration. It is
       submitted that as such the same is the Government’s objective. It is
       submitted that the same may prevent any abuse by the Departmental
       Officers of pre-dating communications and ratifying actions by
       authorizations subsequently made out in the files.
 E
              2.1 It is the case on behalf of the petitioner that even Hon’ble the
       Prime Minister of India had earlier asked the Department of Revenue to
       come up with specific measures to ensure that the honest taxpayers are
       not harassed and served better. It is submitted that in pursuance of the
 F     directions issued by the Hon’ble Prime Minister, the Central Government
       had taken a decision as far as back in the year 2019 to implement the
       DIN system of Central Board of Direct Taxes (CBDT). It is submitted
       that as per the press note issued by the Ministry of Finance on and from
       01.10.2019, every CBDT communication will have to have a Document
       Identification Number (DIN).
 G
              2.2 It is averred that the Document Identification Number system,
       which will bring in transparency and accountability in the tax administration
       and, as on today, the same has been implemented only by two States, i.e.,
       the States of Karnataka and Kerala. It is submitted by learned counsel
       appearing for the petitioner that GST Council as per Article 279A of
 H
              PRADEEP GOYAL v. UNION OF INDIA                                 1145
                       [M. R. SHAH, J.]

the Constitution of India can make recommendations to the States on           A
any matter relating to GST. Therefore, when implementation of the DIN
system is in the larger public interest and the objective to implement the
DIN system is to bring in transparency and accountability in the indirect
tax administration, it is prayed to direct the respondents – States to
implement the DIN system. It is prayed to direct the Central Government
                                                                              B
/ CBIC / GST Council to issue directions to the concerned States to
implement the DIN system in respect of all communications sent by the
State Tax Officers to assessees, taxpayers and other concerned persons.
       3. On the copy of the writ petition being served pursuant to the
order passed by this Court dated 11.07.2022, Shri Balbir Singh, learned
                                                                              C
ASG has appeared on behalf of Union of India. He has submitted that
Union of India does not dispute that by implementing a system for
electronic (digital) generation of a DIN, it will bring in transparency and
accountability in the indirect tax administration. He has submitted that
even as desired by Hon’ble the Prime Minister of India, the Central
Government had taken a decision to implement the DIN system of Central        D
Board of Direct Taxes and on and from 01.10.2019, every CBDT
communication will have to have a Document Identification Number
(DIN). It is submitted that however, 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 and other concerned persons
                                                                              E
is concerned, the same is to be done and/or implemented by the concerned
States. It is submitted that it is true that the GST Council in exercise of
powers under Article 279A of the Constitution of India can make
recommendations to the States and can issue an advisory to all the
States to implement the system for electronic (digital) generation of a
DIN for all communications sent by the State Tax Authorities/ Officers        F
to taxpayers and other concerned persons, as has been done and
implemented by the States of Karnataka and Kerala.
      4. We have heard Ms. Charu Mathur, learned counsel appearing
on behalf of the petitioner and Shri Balbir Singh, learned ASG appearing
on behalf of Union of India.                                                  G
       5. By way of this writ petition under Article 32 of the Constitution
of India, the petitioner has prayed for the following reliefs:-
      “a. Issue a writ of mandamus or any other appropriate writ, order
      or direction to the respondents to take all necessary steps to
                                                                              H
1146            SUPREME COURT REPORTS                           [2022] 6 S.C.R.


 A           implement a system for electronic (digital) generation of a
             Document Identification Number(DIN) for all communications
             sent by the state tax officers to taxpayers and other concerned
             persons;
             b. Issue a writ of mandamus or any other appropriate writ, order
 B           or direction to the GST Council to consider and take a policy
             decision in respect of implementation of DIN system by all the
             states;
             c. Issue a writ of mandamus or any other appropriate writ, order
             or direction to the Central Government/CBIC to introduce
 C           centralised DIN for the entire country;
             d. pass such further order(s) as may be deemed fit and proper in
             facts and circumstances of the present case, in the interest of
             justice.”
              6. It cannot be disputed that implementing the system for electronic
 D     (digital) generation of a Document Identification Number (DIN) for all
       communications sent by the State Tax Officers to taxpayers and other
       concerned persons would be in the larger public interest and enhance
       good governance. It will bring in transparency and accountability in the
       indirect tax administration, which are so vital to efficient governance.
 E     Even the Central Government has also taken a decision and as such
       implemented the DIN system of Central Board of Direct Taxes and on
       and from 01.10.2019, as every CBDT communication will have to have
       a Document Identification Number (DIN). But, as on today, only two
       States, namely, the States of Karnataka and Kerala have implemented
       the system for electronic (digital) generation of a DIN in the indirect tax
 F     administration, which is laudable and to be appreciated.
              7. In view of the implementation of the GST and as per Article
       279A of the Constitution of India, the GST Council is empowered to
       make recommendations to the States on any matter relating to GST.
       The GST Council can also issue advisories to the respective States for
 G     implementation of the DIN system, which shall be in the larger public
       interest and which may bring in transparency and accountability in the
       indirect tax administration. Therefore, we dispose of the present writ
       petition by directing the Union of India / GST Council to issue advisory /
       instructions/recommendations to the respective States regarding
       implementation of the system of electronic (digital) generation of a DIN
 H
                PRADEEP GOYAL v. UNION OF INDIA                                    1147
                         [M. R. SHAH, J.]

in the indirect tax administration, which is already being implemented by          A
the States of Karnataka and Kerala. We impress upon the concerned
States to consider to implement the system for electronic (digital)
generation of a DIN for all communications sent by the State Tax Officers
to taxpayers and other concerned persons so as to bring in transparency
and accountability in the indirect tax administration at the earliest.
                                                                                   B
       With this, the present writ petition stands disposed of.
        Registry is directed to send copy of this order to the Chief Secretary
of all the Respondent States in the Country to take note of the present
order and take further steps in the matter.
                                                                                   C

Devika Gujral                                              Petition disposed of.




                                                                                   D




                                                                                   E




                                                                                   F




                                                                                   G




                                                                                   H