2023 (7) TMI 99 - HC - GST

Landmark GST Investigation Transfer Approved: Unified Probe Ordered with Full Document Disclosure and Procedural Compliance

Vipulchandra Pursottamdas Mahant Prop Of Vaibhavi Construction Versus Assistant Commissioner Of State Tax

HC allowed petition for transfer of proceedings and documents related to GST investigation. Court directed respondents to transfer all documents to ... Parallel proceedings - Search and seizure - inspection was carried out by the respondent no. 4 at the premises of the petitioner under Section 67(1) of the Central/State Goods and Services Tax Act, 2017 and also respondent no. 1 & 2 also issued summons under Section 70 of the Act to the petitioner and petitioner is asked to supply the necessary documents in connection with the inquiry initiated by the respondents no. 1 & 2 (which was in possession of respondent no. 4 herein) - HELD THAT:- When the respondent no. 4 has initiated the inquiry and inspected the documents and carried out the inspection at the place of the petitioner and inquiry is going on in connection with five different Firms at present including M/s. J.M. Enterprise, for which, the summon was issued by the respondent no. 1, whereas M/s Galaxy Enterprise, summon was issued by respondent no. 2. Hence, the present petition deserves consideration. The respondents no. 1 & 2 are directed to transfer the papers/documents to respondent no. 4 for necessary inquiry/investigation in connection with both the Firms viz. M/s. J.M. Enterprise and M/s. Galaxy Enterprise - petitioner is directed to co-operate with the respondent no. 4 and produce necessary/required documents demanded by respondent no. 4 for the purpose of investigation/inquiry and thereafter, it is open for the respondent no. 4 to pass an appropriate order/take appropriate action in accordance with the law. Petition allowed. Issues involved: Petition under Article 226 for transfer of proceedings and documents, quashing of summons, interpretation of Section 6(2)(b) of CGST Act.Summary:Issue 1: Transfer of Proceedings and Documents The petitioner sought direction to transfer proceedings and documents from respondent no. 1 and 2 to Directorate General of GST Intelligence, Vadodara Regional Unit. The petitioner also requested respondent no. 4 to complete the proceedings promptly and to quash the summons issued by respondent no. 1.Issue 2: Interpretation of Section 6(2)(b) of CGST Act The petitioner argued that as per Section 6(2)(b) of the CGST Act, no proceedings should be initiated by another proper officer on the same subject matter once proceedings have been initiated by a proper officer under the Act. The petitioner contended that since respondent no. 4 had already initiated an investigation, respondents no. 1 and 2 should transfer the inquiry to respondent no. 4.Judgment: The Court heard arguments from both sides and noted that respondent no. 4 had initiated an inquiry and inspection regarding multiple firms, including the petitioner's firm. Considering this, the Court directed respondents no. 1 and 2 to transfer all documents to respondent no. 4 for investigation regarding both M/s. J.M. Enterprise and M/s. Galaxy Enterprise. The petitioner was instructed to cooperate with respondent no. 4 by providing necessary documents for the inquiry. The Court allowed the petition to the extent of transferring the proceedings and documents to respondent no. 4 for further action in accordance with the law.