M/S STALWART ALLOYS INDIA PRIVATE LIMITED

VERSUS

UNION OF INDIA AND OTHERS vide CWP No. 1661 of 2022 (O&M) and CWP No. 7411 of 2023 (O&M) dated 28.08.2024 –

Citation: 2024 taxo.online 1852

The Punjab and Haryana High Court in this case, examined the relevant provisions under the GST Act, including Sections 6(2)(B), 70, and 72, which outline the jurisdiction and powers of officers. The Court noted that these proceedings are judicial in nature and cannot be transferred administratively between officers or departments without proper legal provisions. The court found that the GST Act does not allow for the transfer of proceedings from one proper officer to another without explicit legal provisions, and the proceedings initiated by the State Tax Officer should remain under their jurisdiction. The court did not accept the argument that the DGGI’s broader jurisdiction justifies the transfer of the case from the State GST authority to the DGGI.

In this case, Multiple enquiries were initiated against the petitioner for alleged wrongful availment of ITC. Challenging these multiple enquiries, lead to a direction from the court for a single agency to conduct the proceedings. State GST Department decided to take up the enquiry. Despite previous searches, the DGGI conducted another search on petitioner’s premises, while the petitioner also challenged the constitutional validity of Sections 69 and 132 of the CGST Act, 2017. State Tax Officer transferred the proceedings to the DGGI, leading to filing the current writ petition, challenging this transfer as being in violation of Section 6(2)(B) of the HGST Act. It was contended that only the State Tax Officer who initiated the proceedings has the jurisdiction to continue them and that the transfer to the DGGI is illegal. They also argue that multiple proceedings cannot continue simultaneously, relying on a circular dated 05.10.2018 and various high court judgments.

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