2020 (2) TMI 434 - HC - GST

Inquiry proceedings initiated against the petition u/s 70 of GST - Availment of Input Tax Credit (ITC) - Whether the discretionary jurisdiction of this Court under Article 226 of the Constitution of India can be availed by the writ petitioner in the facts and circumstances of the instant case? HELD THAT - The series of summonses / notices which have been issued, clearly reveal that the writ petitioner is not interested in cooperating with the enquiry. Apart from a letter dated 24th January, 2020, written by the writ petitioner, addressed to the concerned Senior Intelligence Officer, after almost four months from the date of issuance of the first summons dated 26th September, 2019, there is nothing on record to show as to how the writ petitioner has specifically responded to the summonses / notices dated 26th September 2019, 27th September, 2019, 1st October, 2019, 7th October,2019, 15th October, 2019 and 19th November, 2019. The facts of the instant case do not qualify for use of discretion by the writ Court in order to grant the writ petitioner such reliefs as prayed for - The writ petition is liable to be dismissed. Petition dismissed - decided against petitioner.

Issues:
1. Jurisdiction of the Court under Article 226 of the Constitution of India.
2. Compliance with summonses issued under Section 70 of the Central Goods and Services Tax Act, 2017.
3. Discretionary relief sought by the petitioner.
4. Comparison with a previous judgment regarding cooperation with the enquiry.
5. Observations on the petitioner's lack of cooperation with the investigation.
6. Application of Supreme Court's views on legal representation during questioning.
7. Dismissal of the writ petition due to lack of merit.

Analysis:

1. Jurisdiction of the Court under Article 226 of the Constitution of India:
The key issue revolves around whether the discretionary jurisdiction of the Court under Article 226 can be invoked by the petitioner in the present case. The petitioner seeks relief from coercive action before being found guilty in the enquiry proceeding initiated under Section 70 of the Central Goods and Services Tax Act, 2017.

2. Compliance with summonses issued under Section 70 of the Central Goods and Services Tax Act, 2017:
The summonses issued to the petitioner relate to the availment of Input Tax Credit without receipt of goods under Section 70 of the Act. The petitioner has not appeared before the Senior Intelligence Officer in response to any of the summonses issued on various dates.

3. Discretionary relief sought by the petitioner:
The petitioner seeks a writ of mandamus to finalize the enquiry proceeding without coercive action and to allow the petitioner's presence through legal representatives for a fair hearing. The Court must assess the petitioner's bona fides to grant such relief.

4. Comparison with a previous judgment regarding cooperation with the enquiry:
A previous judgment is cited where the petitioner was directed to cooperate with the enquiry. The current case involves summonses for a similar purpose, but the petitioner has not shown cooperation with the investigation.

5. Observations on the petitioner's lack of cooperation with the investigation:
The Court notes the petitioner's lack of interest in cooperating with the enquiry, as evidenced by delayed responses and non-appearance before the Senior Intelligence Officer despite multiple summonses.

6. Application of Supreme Court's views on legal representation during questioning:
The Court references a Supreme Court judgment regarding legal representation during questioning in investigations under related statutes. The judgment emphasizes the importance of preventing non-cooperation in such investigations.

7. Dismissal of the writ petition due to lack of merit:
Based on the lack of cooperation from the petitioner and the absence of grounds for discretionary relief, the Court dismisses the writ petition. The petitioner's actions do not warrant the Court's intervention under Article 226 of the Constitution of India.

This detailed analysis of the judgment highlights the legal intricacies involved in the case, focusing on the petitioner's lack of cooperation, the relevance of previous judgments, and the Court's decision to dismiss the petition.

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