Interim protection against coercive GST action granted where the investigator's role as adjudicator was challenged.

In proceedings arising under Section 67 that may lead to action under Section 74 of the CGST Act, the petitioner challenged coercive enforcement on the basis that the same officer should not act as both investigator and adjudicating authority, relying on a departmental circular and a Delhi High Court order. Taking note of a similar order in connected matters, the Bombay HC granted interim protection and restrained the respondents from taking coercive action against the petitioner until further orders.

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Issues: Whether, in proceedings under Section 67 leading to action under Section 74 of the Central Goods and Services Tax Act, 2017, the respondents should be restrained from taking coercive action pending further consideration.

Analysis: The petition raised the contention that the officer who initiated the inquiry and investigation could not also proceed as the adjudicating authority, and reliance was placed on the departmental circular of 09.02.2018 and the Delhi High Court order referred to in the text. The Court, taking note of the similar order passed in connected matters, found it appropriate to grant interim protection.

Outcome: Notice issued, returnable on 21 July 2025, and the respondents were directed not to take any coercive action against the petitioner until further orders.

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