High-Stakes Regulatory Dispute: CCI Order Invalidated for Procedural Flaws, Violating Natural Justice Principles Under Established Governance Norms

HC ruled that the CCI order was invalid due to procedural violations. The court found that the Authority breached natural justice by denying access to crucial reports and potentially exceeded jurisdictional limits. The case was remanded for fresh consideration, with all parties' rights preserved and the original order set aside.

---

---

Issues involved:
The petitioner challenges the order passed by the Competition Commission of India under the Central Goods & Services Tax Act, 2017, alleging violation of natural justice and lack of jurisdiction by the Authority in relation to a separate project.

Violation of Natural Justice:
The petitioner contends that the order was passed without providing copies of reports submitted by the Director General of Anti-Profiteering, which were crucial for consideration. The petitioner argues that this lack of access to the reports denied them the opportunity to address the issues raised, thus violating principles of natural justice. The High Court concurred, stating that the order was vitiated due to this procedural flaw.

Jurisdictional Issue:
The petitioner asserts that the Authority exceeded its jurisdiction by entertaining proceedings related to a project not subject to any complaint. The respondents argue that the Authority can direct investigations into other projects under Rule 133(5)(a) of the Central Goods & Services Tax Rules, 2017. However, the petitioner disputes this interpretation, claiming that the Authority cannot issue directions for investigations unrelated to the complaint.

Court's Decision:
The High Court set aside the impugned order, remanding the matter to the Authority for fresh consideration in accordance with the law. The Court emphasized the importance of following principles of natural justice and ensuring that all contentions raised by the parties are duly considered and decided. The Court clarified that all rights and contentions of the parties are reserved, concluding the petition and disposing of pending applications.

---