Can Bureau of Investigation Officer Conduct Search and Pass Order u/s 74 of GST? Calcutta HC to Decide [Read Order]

The Calcutta High Court has taken up the question of whether an officer of the Bureau of Investigation has jurisdiction to conduct search proceedings under Section 67, adjudicate and pass an order under Section 74 of the GST ( Goods and Services Tax ) Act.

The petition filed by Mrs. Anjita Dokania, proprietor of M/s M I Telecom, challenged an order dated passed under Section 74 of the GST Act. The petitioner challenged multiple issues including ITC blocking and jurisdiction.

She disputed the search operation conducted under Section 67 by the State Tax Officer (GST), Bureau of Investigation (South Bengal), Durgapur Zone.

The petitioner also pointed out that after the search, the GST authorities blocked her Electronic Credit Ledger (ECL) on 09.11.2023 by invoking Rule 86A of the GST Rules, 2017.

The petitioner’s counsel, Adv. Ankit Kanodia argued that the continued blocking of the ECL was illegal since Rule 86A(3) clearly states that such restriction cannot continue beyond one year from the date of imposition. It was further submitted that the authorities failed to disclose reasons for continuing the restriction beyond the permissible period.

The petitioner also challenged the validity of the search itself, submitting that two search operations were conducted and, in respect of the second search, the authorities did not communicate any proper “reasons to believe” as required under Section 67.

Additionally, the petitioner raised a jurisdictional challenge stating that an officer of the Bureau of Investigation lacked authority to act as the adjudicating officer under Section 74.

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The counsel of the petitioner submitted Order No. 09/WBGST/PRO/29 dated 20.11.2019, along with earlier High Court orders where similar issues had been entertained.

The impugned adjudication order was passed by a competent officer having jurisdiction, submitted by the state counsel before the court. It was also submitted that that writ petition insofar as it challenged the search proceedings should not be entertained as it was belated.

However, the State did not resist the issue of Rule 86A completely as the statute itself prohibits blocking beyond 1 year.

Justice Om Narayan Ra noted that Rule 86A(3) leaves no scope for continuing the restriction beyond one year. As the statutory period had long elapsed, the Court directed the GST authorities to withdraw the blocking of the petitioner’s electronic credit ledger.

Further, observing that the High Court had previously entertained writ petitions raising similar jurisdictional challenges against Bureau of Investigation officers and had granted interim protection, the Court directed that the GST authorities shall not take any coercive steps on the basis of the impugned Section 74 adjudication order till the returnable date.

The court, noting that the State strongly contended that the Bureau of Investigation officer had jurisdiction to adjudicate, directed the state to file a report by way of affidavit explaining their stand.

The matter has been listed for further consideration on 28.01.2026.

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