Case Law Details
Marjit Basumatary Vs Union of India (Gauhati High Court)
The Hon’ble High Court of Gauhati, after examining detailed submissions, directs DGGI to produce original records in the court for inspection of the court to ascertain whether there was ‘reason to believe’ or was it a mere pretence.
The petitioner is a works contractor. It undertakes mining of sand etc. under license from the State Government (through the Forest department). It pays royalty to the State Government. Alleged intelligence was gathered, purportedly under Section 67 of the Act, that the petitioner is liable to pay GST on the said royalty on reverse charge basis. The summons under Section 70 of the Act came to be issued to it. During such investigation, the DGGI started conducting audit under Section 65 of the Act and issued show cause notice proposing demand of GST on different grounds including proposed mismatch, delay in filing returns etc. The petitioner made a representation under Section 67(10) seeking “reasons to believe” which led to investigation by DGGI. The said representation was rejected in as much as the SCN has been issued and it contains all grounds and documents. Hence, petition came to be filed challenging the show cause notice and such rejection.
The Hon’ble High Court of Gauhati, after examining detailed submissions, directs DGGI to produce original records in the court for inspection of the court to ascertain whether there was “reason to believe” or was it a mere pretence. Notes that the issue about payment of GST on royalty is pending before the 9 Judge Bench of the Hon’ble Supreme Court and therefore, what is the “reason to believe” for the DGGI to investigate.
The matter was argued by Ld. Counsel Adv. Bharat Raichandani
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