Swastik Plastics Vs Commissioner of DGST (Delhi High Court)
Delhi HIgh Court stay Adjudication Order passed in consequence of investigation/search/seizure and SCN issued under Section 74 of the GST Act for the reason that that the authority who had conducted the investigation/search/seizure cannot conduct the adjudication proceedings as there is likelihood of Bias.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Allowed, subject to the petitioner filing legible copies of dim documents, at least three days before the next date of hearing.
W.P.(C) 5680/2022 and CM APPL. 16906/2022[Application filed on behalf of the petitioner seeking interim relief]
2. This writ petition is directed against the order dated 11.03.2022, passed by the Assistant Commissioner, Delhi under Section 74 of the Delhi Goods and Services Tax Act, 2017.
3. Apart from anything else, Mr Rajesh Jain, who appears on behalf of the petitioner, says that the impugned order has been passed by, one, Mr Chunni Lal Roy, who was also the officer who carried out the investigation and search and seizure at the petitioner’s premises located at Patparganj, East Delhi, Delhi.
3.1. For this purpose, our attention has been drawn to the document appended on page 51 of the case file. This is a document dated 23.08.2021, and authorizes inspection/search and seizure qua the petitioner’s premises. The authorization has been made in favour of Mr Chunni Lal Roy, who, as indicated above, has passed the impugned order dated 11.03.2022.
4. Issue notice.
4.1. Mr Satyakam accepts notice on behalf of the respondent.
5. Mr Satyakam says that he will revert with instructions, on the next date of hearing.
5.1. In case instructions are received to resist the petition, counter-affidavit will be filed before the next date of hearing.
6. Prima facie, according to us, there would be a likelihood of bias, if the person, who carried out the search and seizure operation, is also empowered to conduct the adjudication proceedings.
6.1. In these circumstances, for the moment, the operation of the impugned order dated 11.03.2022 is stayed.
7. List the matter on 11.05.2022.
