GST Assessment by Investigating Officer who Carried Out Search: Delhi HC quashes Order, Directs Re-Adjudication [Read Order]
![GST Assessment by Investigating Officer who Carried Out Search: Delhi HC quashes Order, Directs Re-Adjudication [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/10/GST-Assessment-Investigating-Officer-Delhi-HC-Re-Adjudication-TAXSCAN.jpg "GST Assessment by Investigating Officer who Carried Out Search: Delhi HC quashes Order, Directs Re-Adjudication [Read Order]")
In a significant ruling, the Delhi High Court has recently quashed a GST assessment order passed by an investigating order who carried out the search proceedings for want of jurisdiction and directed the Revenue to re-adjudicate the proceedings. The Petitioner, M/s Swastik Plastics contended that the impugned order has been passed by, one, Mr Chunni Lal Roy, who was also the officer...
In a significant ruling, the Delhi High Court has recently quashed a GST assessment order passed by an investigating order who carried out the search proceedings for want of jurisdiction and directed the Revenue to re-adjudicate the proceedings.
The Petitioner, M/s Swastik Plastics contended that the impugned order has been passed by, one, Mr Chunni Lal Roy, who was also the officer who carried out the investigation and search and seizure at the petitioner’s premises located at Patparganj, East Delhi, Delhi. It was contended that the authorization has been made in favour of Mr Chunni Lal Roy, who, as indicated above, has passed the impugned order dated 11.03.2022.
In an interim order, the High Court in April, held that prima facie, there would be a likelihood of bias, if the person, who carried out the search and seizure operation, is also empowered to conduct the adjudication proceedings.
Before the Court, the department filed a copy of the Circular dated 20.09.2022, regarding “Modification of Guidelines for Tax Authorities for Inspection, Search and Seizure dated 01.12.2020which lays down certaindirections/clarifications.
Quashing the impugned order, Justice Rajiv Shakdher and Justice Tara VitastaGanju held that “the petitioner, in this case, had raised an issue concerning jurisdiction, right at the very outset. In these circumstances, we are of the view, that the respondent/revenue will have to commence de novo proceedings, bearing in mind the modification Guidelines given in the aforementioned Circular i.e., the Circular dated 20.09.2022. Accordingly, the impugned order dated 11.03.2022 is set aside. The logical sequitur would be, that a fresh show cause notice will have to be issued, bearing in mind the aforementioned Circular dated 20.09.2022.”
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to TaxscanPremium. Follow us on Telegram for quick updates.
