Gujarat HC directed Director General of GST Intelligence to Transfer Documents to GST Authority as Investigation Already Initiated on the same matter

In a significant case, the Gujarat High Court directed the Director General of Goods and Service Tax (GST) intelligence Wing to transfer documents to GST authority as an investigation had already been initiated on the same matter.

Vipul Chandra Pursottamdas Mahant, the petitioner has prayed that the respondent No.1 and 2 be directed to transfer the proceedings in connection with the case of the petitioner along with the documents which are in their possession to Directorate General of GST Intelligence, Vadodara Regional Unit i.e. respondent no.4.

Advocate Mr Sahil Rao appeared for the petitioner, Assistant Government Pleader Mr Pranav Trivedi appeared for respondents no.1 to 3 and Standing Counsel Mr Priyank Lodha appeared for respondent no.4.

The petitioner submitted that the inspection was carried out by respondent No. 4 at the premises of the petitioner under Section 67(1) of the Central/State Goods and Services Tax Act, 2017 (CGST Act). The said investigation was carried out on 10.12.2021 and is still pending before respondent no.4

Respondent no.1 & 2 also issued summons under Section 70 of the Act to the petitioner and the petitioner is asked to supply the necessary documents in connection with the inquiry initiated by the respondents no.1 & 2.

It was further submitted that the petitioner has specifically informed respondents no.1 and 2 that the documents as demanded by the concerned respondent, have respondent no.4.

In light of Section 6(2)(b) of the CGST Act, the petitioner submitted that the first investigation/inspection/inquiry is initiated by respondent no.4 in connection with the petitioner and it is not open for respondents no.1 & 2 to inquiry into the same aspects.

In light of the circumstances, the division bench of Justice Vipul M Pancholi and Justice Devan M Desai directed respondents no.1 & 2 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.

Further directed the petitioner to co-operate with respondent no.4 and produce necessary/required documents demanded by respondent no.4 for investigation/inquiry and thereafter, it is open for respondent no.4 to pass an appropriate order/take appropriate action by the law.

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