REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

WRIT PETITION (CIVIL) NO. 320 OF 2022

Pradeep Goyal …Petitioner

Versus

Union of India & Ors. …Respondents

O R D E R

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

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.

1.1It 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.

1

2.It is the case on behalf of the petitioner that by implementing a

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.

2.1It 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

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).

2.2It 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

2

Article 279A of the Constitution of India can make recommendations to

the States on 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 / 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 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 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

3

sent by the State Tax Officers to taxpayers and other concerned persons

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 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.

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 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 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 centralised DIN for the entire country;

4

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

(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.

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

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

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

5

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 in

the indirect tax administration, which is already being implemented by 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.

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.

…………………………………..J.

[M.R. SHAH]

NEW DELHI; …………………………………..J.

JULY 18, 2022. [B.V. NAGARATHNA]

6