Indo International Tobacco Ltd Vs Vivek Prasad (Delhi High Court)
The Hon’ble Delhi High Court in M/S. Indo International Tobacco Ltd. & Ors. v. Shri Vivek Prasad, Additional Director General, DGGI & Ors. [Cont.Cas(C) 751/2021 & Cm No.35806/2021 dated January 11, 2022] dismissed the applicability of Circular in a petition challenging the conduct of alleged parallel investigation by various jurisdictional authorities and affirmed the investigations conducted various jurisdictional authorities of the Revenue Department into entities having common nexus. Held that, Circular cannot be extended to cover all and myriad situations that may arise in the administration and the functioning of the GST structure.
Facts:
M/S. Indo International Tobacco Ltd. and M/S. SSM Exports (“the Petitioners”) are engaged in the manufacturing and supply of tobacco products. These writ petitions have been filed, being aggrieved of multiple search operations, summons being issued and cancellation of GST registration by the Revenue Department (“the Respondent”) for alleged availment and utilization of inadmissible Input Tax Credit (“ITC”) and to challenge the conduct of alleged parallel investigation by officers of CGST, Directorate General of Goods and Services Tax Intelligence (“DGGI”) Ahmedabad and Delhi Unit, Joint Commissioner (AE), CGST etc. (“various jurisdictional authorities”).
The Petitioner contended that issuance of such multiple summons by multiple agencies is violative of the mandate of Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) and as also the Circular No. D.O.F.No. CBEC/20/43/01/2017-GST (Pt.) dated October 5, 2018 (“the Circular”) clarifying initiation of intelligence based enforcement action.
Issue:
Whether parallel investigation by various jurisdictional authorities can be conducted at same time against the Petitioners?
