Bengal Cold Rollers Private Limited Vs Assistant Commissioner (ST) & Ors. (Supreme Court of India)
SC Allows GST Appeals Despite Missing Seized Files Because Issue Can Be Examined by Appellate Authority; SC Declines to Interfere in GST Assessment Proceedings Because Alternative Appeal Remedy Exists; SC Says Missing GST Seized Files Issue Must Be Raised Before Appellate Authority; SC Upholds Continuation of GST Proceedings Because Department Agreed Not to Rely on Missing Files.
Also Read SC order on Pre-deposit in this case: SC Upholds 5% GST Pre-Deposit Condition for Statutory Appeals
In, the dispute arose from GST assessment proceedings initiated against the petitioner for the assessment years 2019-20 to 2023-24 following a departmental search and seizure operation conducted on 26.12.2023. During the search, several files and documents were seized by the tax authorities. The petitioner alleged that 14 seized files containing important records such as invoices and related documents had gone missing while in the custody of the Department.
Before the Telangana High Court, the petitioner challenged the Department’s continuation of adjudication proceedings under Section 74 of the GST Act despite the alleged non-availability of the seized files. The petitioner contended that without copies of the missing documents, it was unable to submit a detailed and effective reply to the show cause notices and could not properly defend itself against allegations of fraudulent transactions and bogus invoices. The petitioner also argued that proceeding with adjudication without supplying the missing documents violated principles of fair opportunity and Section 67(5) of the GST Act.
