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Indirect Taxes Consultants Association has written to Hon’ble Prime Minister of India and complained against the alleged High Handedness of the CGST Authorities against the Chartered Accountant in Ludhiana. Full text of the letter is as follows:-


Bar Room, Excise & Taxation Office, Mini Secretariat, Ludhiana-141 001
E-mail :

Date: 18.01.2020


The Hon’ble Prime Minister of India
New Delhi.

Sub.: Complaint against the High Handedness of the CGST Authorities against the Chartered Accountant in Ludhiana.

Respected Sir,

Before going in to the details of Present Complaint it is worth emphasizing the role of Chartered Accountants in smooth implementation and execution of G.S.T., since its inception, during all turbulent times. As we all know, the G.S.T. had been introduced in July-2017 by the legislature of Union of India. The efforts done by the Chartered Accountants in smooth implementation of the same is known to one and all. The C.A. fraternity had made all their efforts to guide the Trade, Industry, and Department. Thousands of the seminars, training programmes, lectures had been organized to disseminate the knowledge and provisions of the G.S.T.

It is very heartening to apprize your kind office with the ground realities. Administration of the CGST Act is being done by the authorities in very High-Handed manner. Professionals, who play very vital role of assisting the authorities as well as guiding the Assesses for smooth implementation of the Act, are being ill-treated with mala-fide intentions, for the reasons best known to the Authorities.

Small scale industry is back bone of the Nation providing maximum employment with least capital. The peculiar feature of small scale industry is that the industry is not equipped with sufficient in-house resources to cope with the transitory phase of moving from traditional business to modern business, including compliances of newly introduced taxation/other laws, and compelled by the circumstances such entrepreneurs necessarily engage professionals to guide them. Professionals, so engaged help in smooth functioning of She business as well compliances of the law. Without assistance / guidance of the professional, smooth running of business is nut possible. At present more than 1200 chartered Accountant are practising at Ludhiana.

We wish to apprise you about the latest incident that happened in Ludhiana. The present incident took place on 15-01-2020, M/s. S.K. Deepak Knitwear having approximate annual turnover of Rs. 3 Crore was searched by the C.G.S.T. Preventive Team led by Sh. Narain Singh Ajnoha. At around 5.30 PM, on call by client and the C.G.S.T. Team doing search, our member CA. Rajesh Mahajan aged about 54 years and in practice of Direct and Indirect Taxes for more than 25 years, was called to assist them in the proceedings. From around 6.00 PM to 9.00 PM, every effort was made by assessee as well as officials of the department to reach at some consensus. However, all attempts failed to yield any results. There was very conducive environment and full co-operatoon was extended to the authorities. No confrontation of any kind was done by CA. Rajesh Mahajan. However, all of a sudden at around 9.30 PM a group of persons comprising of members of Vayapar Mandal entered the premises of client and started arguing with the search team. CA. Rajesh Mahajan feeling uncomfortable with the situation left the premises immediately. It is brought to your kind notice that since, CA. Rajesh Mahajan had left the premises, so there is no question of any confrontation with search team by our member. The fact can be verified from the mobile location/mobile call details of CA. Rajesh Mahajan and other persons present there. It is not out of place to mention that CA. Rajesh Mahajan fully assisted the search team throughout his presence there.

On 17.01.2020 late evening CA. Rajesh Mahajan was stunned to hear it from a friend’s mouth that F.I.R. has been registered by the C.G.S.T. Department and his name is included in the F.I.R. Various baseless allegations were levelled against CA.Rajesh Mahajan, without any cogent evidence for the same. Such abuse of power by the authorities is not only illegal but against the interest of profession as well as society at large. Professional community, is deeply hurt by this arbitrary act of Authorities. Authorities cannot be allowed to act at their whims and fancies without considering the facts, evidence in a judicious manner. The tussle of assessees and authorities cannot be extended to include name of the Professional. Otherwise, whole system will collapse and no one would be available to assist the Department and guide the assesses.

We are very sorry to inform your kind office that preached intentions of the Central Government are not being followed by the Authorities in spirit and substance. It is also worth mentioning here that in last 40 to 50 years none of the professional name was dragged into such controversies between authorities and the business organisations. Such action on the part of department manifest the level of frustration for their own incompetence to deal with the things conscientiously

In view of the circumstances and facts narrated above it is requested:

1. That a request from C.G.S.T. Department should be immediately given to the concerned Police Authorities, that name of our member CA. Rajesh Mahajan be deleted from the F.I.R. lodged by the department.

2. That a Departmental enquiry should be immediately initiated against the official concerned for implicating the name of professional CA. Rajesh Mahajan in police F.I.R. and Press note.

3. In future, in any such incidence, name of any professional present over there should not be dragged unnecessarily, until any specific evidence of his involvement is available. Further, such member should first be given an opportunity of being heard on the matter in the presence of the then Bar Executives.

So in the light of the above discussion, the P.M.O. should issue guidelines/ directions to the various concerned departments and agencies.


President, I.T.C.A.

CC To:

1. Ministry of Finance, New Delhi.

2. Chairman, CBIC, New Delhi.

3. S.T. Council, New Delhi.

4. Director General, DGGI, New Delhi.

5. Chief Commissioner, Central goods and Service Tax, Chandigarh.

6. Principal Commissioner, Central Goods and Service Tax, Ludhiana

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    This type of letters to PM without approaching authorities must be avoided. This type of letters prima facie make authorities presume that reports are true. As chartered accountants, we must desist from avoidable confrontation and if, it becomes essential, we must observe protocol and route the complaint through proper channel . This type of letters invariably boomrang and spoil the name of the profession. The right way would have been to take up matter with highest authority of GST, which incidentally is stationed at Ludhiana only and Police Authorities to exclude his name from FIR based on factual details. The version submitted by GST authorities is subject to verification by Police before including the name in FIR

  2. Chandan says:

    Response is very quick and appreciable. CA s are now a days very easy target in the eyes of every government officials. Many CAs are now switching to other industries due to failure of GSTN.
    GSTN is purely an harassment to traders and business and a nightmare to CAs. Every month we are forced to call for OTPs.

  3. Vijay Kumar says:

    Govt should certain camp or meeting with business to guide certain new amendment in gst so that they could smoothly run their business

  4. Y K TRIVEDI says:


  5. GuruRaj says:

    It is really unfortunate that an administration that was wholeheartedly voted in for reigning in the bureaucracy has since inception found the CA to be the most vulnerable fall guy . The industrialists businesses cannot be touched as they have strong assns and legal backing, the legal fraternity is sacrosanct and the CA is a convenient fall guy. One sincerely hopes the PMs office reacts positively and understands that all Businesses and CAs cannot be judged as law breakers and tax evaders

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