GST Authority’s Defiance of CBIC Instructions Challenged before Allahabad HC
By: Admin
May 31, 2024
Categories: GST Recent News
4 Min Read
Gallantt Ispat Ltd has challenged, before the Allahabad High Court (HC), the defiance by goods and services tax (GST) authorities of instructions issued by the central board of indirect taxes & customs (CBIC) on discipline to be maintained during search matters.
During the hearing last week, a division bench comprising justice Saumitra Dayal Singh and justice Donadi Ramesh observed that while detailed reference has been made to such circulars and letters, it is a case of Gallantt Ispat that the GST authorities have acted wholly in defiance of the same. “Gallantt Ispat, who had not made any violation of law, has been forced to deposit an amount excess to Rs10.03 crore in the course of the investigation that has continued for more than one and half years. Further, its (Gallantt Ispat’s) principal officers and senior officers are being threatened with arrest without any valid proceeding or ground.”
Senior counsel Tarun Gulati stated that the petition had been filed to show how GST authorities have been acting in complete defiance of CBIC instruction no1/2022-23 dated 25 May 2022, and instruction no 2/2022-23 dated 17 August 2022, in which all the field formations (of GST) were intimated of the discipline to be maintained by them in search matters. These instructions also laid down conditions for the same, he added.
As per the instructions, no recoveries of tax dues may be made during the course of the search, inspection, or investigation. Due care may be taken before initiating an investigation in cases of listed companies, public sector units (PSUs), corporations, or government departments and summons should not be used as a means to seek information.
Further, it also instructed GST authorities not to use vague expressions like GST inquiry or GST evasion while issuing summons. “Summons may not be issued for fishing and roaming inquiry. Strict observance of the law may be made in making arrest and those provisions may not be readily invoked.”
Dhananjay Awasthi, counsel for GST authorities, submitted before the HC that, at present, no further recoveries or other coercive measures are contemplated against Gallantt Ispat, pending investigation.
On his prayer, the bench granted him six weeks to file a counter affidavit and a week after that to Gallantt Ispat for filing a rejoinder affidavit.
The next hearing on the matter is scheduled for 12 August 2024.
Source from: https://moneylife.in/article/gst-authoritys-defiance-of-cbic-instructions-challenged-before-allahabad-hc/74262.html