Calcutta HC Upholds Preliminary Report issued by Deputy Commissioner of Revenue u/s 67 of WBGST Act on ground of Non Filing of Objection by Petitioner [Read Order]

The Calcutta High Court upheld the preliminary report issued by the Deputy Commissioner of Revenue under section 67 of the West Bengal Goods and Service Tax Act,2017 on the ground of non-filing of objection by the petitioner. 

Hahnemann’s Jac Olivol Group of Products Private Limited & Anr, the petitioner filed a writ petition challenging the preliminary reports issued by the Deputy Commissioner of Revenue, Bureau. 

Ankit Kanodia, Megha Agarwal, and Jithesh Sah, the counsels for the petitioner contended that the preliminary reports on the alleged ground that the deputy commissioner of revenue does not have any jurisdiction to ask the petitioners to file any objection to the preliminary reports or asking the petitioners to avail the opportunity of personal hearing. 

Further submitted that the preliminary report issued by the deputy commissioner of revenue was not as per the law and not sustainable. 

Siddiqui, the counsel for the respondent department contended that the entire exercise taken by the Bureau of Investigation through its concerned officer is only at the “preliminary stage of investigation” and to observe the principle of natural justice. 

Also stated that the preliminary reports forwarded to the petitioners provided them the opportunity to file any objection to the same if they have any and the same were only prima facie computations and nothing more against the petitioners at this stage. 

The Court observed that the preliminary reports based on the investigation in question are strictly in terms of the Act, rules and orders issued by the competent authority from time to time, and more particularly Section 67 of the West Bengal Goods and Service Tax Act bestows the power of inspection, search, and seizure upon the officer, not below the rank of Joint Commissioner. 

A single-member bench comprising Nizamuddin. J upheld the preliminary report and directed the petitioner to file objections if any relating to the preliminary stage of the investigation. 

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