Truvolt Engineering Company Pvt. Ltd. & Anr. Vs Additional Assistant Director (Calcutta High Court)
Calcutta High Court: DGGI Cannot Initiate Parallel GST Investigation for Period Already Audited by State GST Authorities
Brief Facts of the Case
In this significant ruling, the petitioner—Truvolt Engineering Company Pvt. Ltd.—challenged the initiation of proceedings by the Directorate General of GST Intelligence (DGGI) through notices issued in November 2024 and May 2025.
The petitioner argued that:
- A State GST audit under Section 65 of the CGST/WBGST Act for FY 2019–20 to 2021–22 had already been concluded, with a show cause notice issued on 29th November 2024.
- For later years—FY 2022–23 to 2024–25—the State GST authorities had already initiated a search and seizure operation under Section 67, as evidenced by a panchnama dated 22nd August 2024.
- Therefore, a parallel investigation by DGGI covering the same periods was unjust, excessive, and amounted to duplication of proceedings.
On the other hand, DGGI argued that:
- There was no statutory bar on the Central authority initiating independent investigations, even if the State had already conducted one.
- The matter involved fraudulent transactions, thereby justifying independent investigation by the central authorities.
Issue Before the Court
Whether the Central GST authority (DGGI) is empowered to conduct fresh investigations for the same tax periods that have already been subjected to audit or search proceedings by the State GST authorities?
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