[BREAKING] Alleged Non Compliance with S. 100 of CrPC Witness Requirement in GST Inspection: Patna HC Orders Dept to Produce Evidence of Witnesses [Read Order]

The Patna High Court has directed the GST ( Goods and Services Tax ) department to provide evidence from two witnesses who were present during the inspection. This directive pertains to a case involving alleged non-compliance with witness requirements under Section 100 of the Criminal Procedure Code (Cr. P.C.).

The bench of Chief Justice K. Vinod Chandran and Justice Harish Kumar stated that “We are of the prima facie opinion that merely because no such objection was raised before the inspecting team or the Assessing Officer, it would not restrict the petitioner from raising a ground which goes to the very root of the matter, to vitiate the inspection conducted.”

The facts of the case is that an inspection was conducted in the premises of the Petitioner, M/s R.S. Enterprises which led to Annexure-P/1 report and the assessment order did not comply with the provisions of the CrPC, is the argument.

It was submitted that the Section 67 of the Bihar Goods and Services Tax Act specifically requires an inspection to be conducted in accordance with the Criminal Procedure Code. Section 100 of the CrPC mandates that there shall be two witnesses when the inspection is conducted. It was alleged that the same has not been followed by the department.

The Government Advocate submitted that the inspection report has not been produced in its totality. It was also submitted that the report was accepted by the petitioner's representative without demur and there was no such contention raised before the Assessing Officer.

However, the court held a prima facie opinion that the absence of objections during the inspection or before the Assessing Officer does not bar the petitioner from contesting the validity of the inspection process.

Consequently, the court directed the respondents to file a counter affidavit providing evidence that the inspection was conducted with the required witnesses present. The case has been scheduled for further hearing on June 28, 2024, with a stay on any recovery proceedings in the interim.

Mr. Bijay Kumar Gupta, Advocate appeared for the petitioner and  Mr. Vikash Kumar, SC-11 appeared for the respondents.

To Read the full text of the Order CLICK HERE

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