Case Law Details
Bhagat Ram Om Prakash Agro Private Limited & Anr Vs Commissioner Central Tax GST Delhi- East (Delhi High Court)
Delhi HC quashes GST search on Bhagat Ram Agro, cites errors in authorization and lack of statutory basis. Emphasizes the importance of legal adherence in GST proceedings.
1. Background: The petitioners challenge the search authorization dated 22.08.2023, summonses under Section 70 of the CGST Act, and subsequent proceedings. The search was initiated based on directions from a Special Judge, raising suspicions about the source of Rs. 50,00,000 received by the petitioners.
2. Search Authorization: A search under Section 67(1) of the CGST Act was conducted on 08.2023, guided by the Special Judge’s order to check the source of funds. The DIG & Head of Branch, CBI, directed the Principal Chief Commissioner, Delhi CGST, to take action based on the order.
3. Invalid Authorization: The record shows that no further investigation was conducted before the inspection authorized under Section 67(1) of the CGST Act on 22.08.2023. The Commissioner, Central Tax GST, issued an authorization citing grounds that were not substantiated, rendering it erroneous.
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