2021 (2) TMI 699

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.... quashing of summons dated 8.12.2020 (Annexure P-14) by way of writ of Certiorari and further to restrain Respondent No.1-Additional Director General, Ludhiana Zonal Unit, Directorate General of GST Intelligence from carrying out further investigation against him. As per the petitioner, he is proprietor of M/s R.K.M. Steels Industries, Kanpur, which is engaged in trading of iron and steel products. In October, 2020, the officials of Commissioner, Central Goods and Services Tax, Kanpur-respondent No.2 initiated an investigation against the petitioner alleging misuse of Input Tax Credit (hereinafter referred to as 'ITC'). The Directorate General of GST Intelligence, Ludhiana (hereinafter referred to as 'DGGI, Ludhiana') initiated another i....

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....ana and DGGI Bhopal have got no power to start fresh investigation regarding the same allegations. Such action is not permissible under the provisions of Section 6(2)(b) of CGST Act, 2017. The overlapping investigations being initiated by DGGI, Ludhiana and DGGI Bhopal are totally illegal and beyond jurisdiction. Once the 'Proper Officer' as per Section 6 of CGST 2017 is seized of the matter, the same cannot be simultaneously put to another investigation by the Officer appointed under Section 3 of CGST Act, 2017. The subsequent investigations conducted by DGGI, Ludhiana and DGGI Bhopal deserve to be quashed. On the other hand, counsel for the Respondent No.1 submitted that the subject matter involved in the investigations carried out by ....

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....e been served to the petitioner as well as his wife. The investigation conducted by respondent No.2 is limited to information provided by DGGI, Lucknow, CGST Agra and DGGI Ghaziabad about fake availment of ITC by M/s R.K.M. Steels Industries from bogus firms namely M/s Shri Radhe Traders, Kanpur; M/s M.G. Enterprises, Agra; M/s T.C. & Company, Agra and M/s Dharam Enterprises, Agra. The matter under investigation before DGGI Bhopal is limited to purchases and availment of ITC by M/s R.K.M. Steel Industries from M/s Diamond Enterprises. Accordingly, the petitioner has been summoned under Section 70 of CGST Act, 2017 by DGGI, Bhopal. The aforesaid position, makes it quite clear that different Officers appointed under Sections 3 & 6 of CGST Act....