GST: Punjab & Haryana HC refuses to interfere in Investigations conducted by Competent Officers, not contrary to Section 6(2)(b) of CGST Act [Read Order]

GST - Punjab and Haryana High Court - Competent Officers - Section 6(2)(b) of CGST Act - Taxscan

The Punjab and Haryana High Court refused to interfere in investigations conducted by competent Officers, not contrary to Section 6(2)(b) of the CGST Act.

The petitioner, Kaushal Kumar Mishra is proprietor of M/s R.K.M. Steels Industries, Kanpur, which is engaged in trading of iron and steel products.

The officials of Commissioner, Central Goods and Services Tax, Kanpur initiated an investigation against the petitioner alleging misuse of Input Tax Credit (ITC).

The Directorate General of GST Intelligence, Ludhiana initiated another investigation alleging misuse of ITC by the petitioner and its sister concern M/s ESA Steel Rolling Mills.

The officials of DGGI, Ludhiana searched residential premises of the petitioner and office of M/s ESA Steel Rolling Mills, which is a proprietorship concern of Smt. Ereena Mishra, wife of the petitioner.

The DGGI, Ludhiana acting beyond its jurisdiction, has initiated investigation with regard to the same allegations, which are already under investigation by respondent authority.

Even officials of DGGI, Bhopal have also issued summons under Section 70 CGST Act 2017 with regard to the same allegations, which are being looked into by respondent authority.

The investigations being carried out by Respondent and DGGI Bhopal overlapping the initial investigation conducted by Respondent are unwarranted and in violation of the provisions of Section 6 of CGST Act, 2017.

The petitioner sought the quashing of summons by way of writ of Certiorari and further to restrainAdditional Director General, Ludhiana Zonal Unit, Directorate General of GST Intelligence from carrying out further investigation against him.

The Respondent authority alleged that M/s R.K.M. Steels Industries owned by the petitioner had passed on fraudulent ITC to its sister concern M/s ESA Rolling Mills, Mandi Gobindgarh which is owned by his wife Ereen Mishra.

The matter is being investigated by DGGI Ludhiana and in that regard summons have been served to the petitioner as well as his wife. The investigation conducted by respondents is limited to information provided by DGGI, Lucknow, CGST Agra and DGGI Ghaziabad about fake availment of ITC by M/s R.K.M.

The division bench of Justice Rajan Gupta and Justice Karamjit Singh noted that different Officers appointed under Sections 3 & 6 of CGST Act, 2017 are independently investigating altogether different matters, in accordance with law, without any overlapping. Moreover, the alleged contraventions are prima facie cognizable and punitive in nature under CGST Act, 2017.

The court held that the investigations being conducted by competent Officers against the petitioner are not hit by provisions of Section 6(2)(b) of CGST Act, 2017.

Therefore the court saw no reason to interfere with the aforesaid investigations undertaken by the competent authorities against the petitioner under CGST Act, 2017.

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