GST investigation must be completed within a reasonable time; indefinite pendency is impermissible where documents were already furnished.

GST investigation cannot remain pending indefinitely merely because multiple authorities must coordinate. The Calcutta HC held that some time may be needed for inter-departmental coordination, but the investigation must still be completed within a reasonable period, especially where the taxpayer has already furnished the required documents long earlier. It directed the respondents to complete the investigation within six months and stated that failure to do so would be treated as the respondents having no case against the taxpayer. The taxpayer was left free to pursue any refund claim before the competent authority.

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Issues: Whether the GST investigation could remain pending for an indefinite period and whether a time-bound direction was warranted for completion of the investigation.

Analysis: The petitioner complained of inaction in completing the investigation and relied on the prescribed period indicated in Circular No.131/1/2020-GST dated 23rd January, 2020. The respondents stated that multiple authorities were involved and that coordination among them was necessary. The Court held that although some time could be required for inter-departmental coordination, the investigation could not be kept pending indefinitely or at the convenience of the authorities, particularly when the petitioner had already furnished the requisite documents long earlier.

Conclusion: The respondents were directed to complete the investigation within six months. Failure to do so would be treated as the respondents having no case against the petitioner.

Final Conclusion: The writ petition was allowed to the extent of securing a time-bound completion of the pending GST investigation, while leaving the petitioner free to pursue any refund claim before the competent authority.

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