2021 (2) TMI 925 - HC - GST

Court Addresses Allegations of Harassment by DGGI Officers, Emphasizes Legal Procedures

The court addressed allegations of undue harassment by DGGI officers, emphasizing adherence to legal procedures and no resorting to undue pressure. ... Impleadment of the Central Board of Indirect Taxes and Customs as party respondent - issuance of guidelines by way of Circular/Instructions - search proceedings under Section-67 to be conducted strictly in accordance with law - officers to act within the four corners of law and refrain from undue harassmentImpleadment of the Central Board of Indirect Taxes and Customs as party respondent - issuance of guidelines by way of Circular/Instructions - CBIC to be impleaded as party respondent and put on notice regarding issuance of guidelines as directed in the order dated 16th February 2021. - HELD THAT: - The Court directed that all counsel in the respective writ-applications shall implead the Central Board of Indirect Taxes and Customs as a party respondent and amend the cause-title accordingly. The Court put the CBIC to notice to show cause why the guidelines referred to in the Court's earlier order dated 16th February 2021 should not be issued by way of a Circular or administrative instructions. The Additional Solicitor General waived service on behalf of the CBIC and was directed to consult the highest authority of the CBIC on the matter. [Paras 3]CBIC to be impleaded and is put on notice to consider issuance of the guidelines by Circular/Instructions; ASG waived service and to consult CBIC authorities.Officers to act within the four corners of law and refrain from undue harassment - search proceedings under Section-67 to be conducted strictly in accordance with law - Allegations of undue harassment by the officers shall be inquired into and officers were cautioned to perform duties within law; search proceedings under Section-67 remain permissible but must comply with legal requirements. - HELD THAT: - The Court recorded an assurance from the Additional Director General that an appropriate inquiry has been initiated into the allegations of undue harassment and that any inquiry or investigation will be conducted in accordance with law. The Court made clear that, while it appreciates enforcement efforts against fraud and tax evasion, officers must not take law into their hands and must act within the four corners of law. It further clarified that officers remain at liberty to conduct search proceedings under Section-67, provided such proceedings are strictly in accordance with law. [Paras 1, 4, 5]Inquiry into allegations to be carried out according to law; officers warned to desist from harassment and may conduct searches under Section-67 only in strict compliance with legal norms.Judicial oversight by way of directions in public interest - Court summoned officers to address the allegations by joining the video conference and recorded its stance on not discouraging officers while warning them to observe legal limits. - HELD THAT: - Because of the serious allegations, the Court required senior officers of the DGGI, Surat to join the video conference and respond to the writ-applications. The Court emphasized that the purpose was not to lower officers' morale but to remind them to perform duties lawfully. The officers were informed that they need not attend the next hearing, and the Court's message to them was reiterated. [Paras 1, 5, 6]Senior officers were called to address complaints; Court reiterated support for lawful enforcement while warning against unlawful conduct and dispensed with their attendance at the next hearing.Final Conclusion: The Court ordered impleadment of the CBIC and put it on notice to consider issuing the earlier-directed guidelines by Circular/Instructions; recorded that an inquiry will be conducted into allegations of harassment and cautioned officers to perform searches and other enforcement actions strictly within legal limits. Issues:1. Allegations of undue harassment by DGGI officers2. Directions to be issued to CBIC3. Impleadment of CBIC as a party respondent in writ-applications4. Assurance of no further complaints of harassment5. Conduct of officers within the boundaries of the lawDetailed Analysis:1. The judgment addresses the allegations of undue harassment by officers of the DGGI, Surat. Dr. Satish Dhavale, the Additional Director General, assured that an appropriate inquiry has been initiated to look into the allegations raised in the writ-applications. The court emphasized the need for officers to act within the confines of the law and not resort to undue pressure or threats. The officers were reminded to conduct any inquiries or investigations in accordance with legal procedures to avoid any further complaints of harassment.2. The court, considering the circumstances, decided to issue directions to the Central Board of Indirect Taxes and Customs (CBIC). The learned Additional Solicitor General of India, Mr. Devang Vyas, highlighted the necessity to involve the CBIC in the proceedings. It was directed that the CBIC be impleaded as a party respondent in the respective writ-applications, and the cause-title was to be amended accordingly. Mr. Vyas was entrusted with discussing the matter with the CBIC to ensure compliance with the court's directives.3. In furtherance of the above decision, the court waived the service of notice for and on behalf of the CBIC, and Mr. Vyas was instructed to engage with the highest authority of the CBIC seriously. The CBIC was put on notice to provide reasons if the guidelines specified in the previous order were not to be issued through Circular/Instructions. This step was taken to ensure the involvement and compliance of the CBIC in the ongoing legal proceedings.4. Dr. Satish Dhavale provided an assurance that there would be no further complaints of harassment, threats, or undue pressure against the officers of the department. It was emphasized that any future inquiries or investigations would be conducted strictly in accordance with the law. This assurance aimed to alleviate concerns regarding the conduct of the officers and to ensure adherence to legal protocols in all proceedings.5. The court reiterated the importance of officers performing their duties within the legal framework and refraining from taking the law into their own hands. While acknowledging the efforts of officers in combating fraud and tax evasion, the court emphasized the need for all actions to be conducted lawfully. The judgment highlighted the court's stance on conducting search proceedings under Section-67 strictly in accordance with the law. The next hearing was scheduled for further proceedings, with a clear instruction that officers should not join the video conference on the subsequent date, emphasizing the message that all actions must be carried out within legal boundaries.