2020 (10) TMI 950 - HC - GST

Stay on the operation of direction under Rule 133(4) of the CGST Rules - HELD THAT - The direction under Rule 133(4) of the CGST Rules given in the impugned order dated 07th July, 2020 to the respondent no.3 to undertake further investigation and the notice dated 09 th October, 2020 as well as summons dated 25th September, 2020 are stayed till further orders. Accordingly, the application stands disposed of.

Summary

Issues:
1. Stay on operation of direction under Rule 133(4) of the CGST Rules
2. Validity of notice and summons issued by respondent no.3
3. Coercive steps threatened by respondent nos. 2 and 3
4. Passing on benefits of input tax credit to flat buyers

Stay on operation of direction under Rule 133(4) of the CGST Rules:
The petitioner filed an application seeking a stay on the operation of direction under Rule 133(4) of the CGST Rules, as well as on the notice dated 09th October, 2020 and summons dated 25th September, 2020 issued by respondent no.3. The petitioner's counsel argued that despite a previous stay on penalty proceedings and investigation for other projects, respondent no.3 continued with the investigation related to the '16th Park View' project. The Court granted a stay on the direction under Rule 133(4) of the CGST Rules, the notice dated 09th October, 2020, and the summons dated 25th September, 2020 until further orders.

Validity of notice and summons issued by respondent no.3:
The petitioner raised concerns about the validity of the notice dated 09th October, 2020 and the summons dated 25th September, 2020 issued by respondent no.3. The petitioner argued that despite a stay on further investigation, respondent no.3 insisted on the petitioner providing information and documents regarding the '16th Park View' project. The Court acknowledged the petitioner's concerns and stayed the notice and summons pending further orders.

Coercive steps threatened by respondent nos. 2 and 3:
The petitioner expressed apprehension that respondent nos. 2 and 3 would take coercive steps if the summons and notice were not stayed by the Court. The petitioner highlighted the urgency of the situation and the potential adverse consequences if the coercive steps were taken. The Court took note of these concerns and granted a stay on the notice and summons to prevent any coercive actions against the petitioner.

Passing on benefits of input tax credit to flat buyers:
The petitioner emphasized that the entire benefit of input tax credit and the reduction in the rate of tax had been passed on to the flat buyers. This assertion was made to demonstrate compliance with tax regulations and to support the petitioner's position in the case. The Court did not delve into the specifics of this claim but focused on addressing the immediate issues related to the stay on the investigation and related notices and summons.

In conclusion, the Court, comprising Hon'ble Mr. Justice Manmohan and Hon'ble Mr. Justice Sanjeev Narula, granted a stay on the operation of the direction under Rule 133(4) of the CGST Rules, the notice dated 09th October, 2020, and the summons dated 25th September, 2020 until further orders. The order was to be uploaded on the website immediately, and copies were to be forwarded to the respective counsels through email.