2022 (12) TMI 408 - HC - GST

Territorial Jurisdiction - investigation against the assessee at different locations - Seeking forbearance from proceeding with the investigation with regard to Goods and Services Tax under the provisions of Central Goods and Service Tax Act, 2017 - territorial nexus between the appellant and the respondent Officers at Coimbatore or Madurai - HELD THAT - Though the officer from the Intelligence Department of Directorate General of Goods and Services Tax Intelligence is competent to investigate into the affairs of the appellant, the officer, who would be competent to investigate would be the officer, who is stationed in Chennai within whose jurisdiction the appellant is located. The writ appeal stands allowed with a direction to the respondents to depute an officer in Chennai to investigate into the affairs of the appellant and issue summons as to whether there is any evasion of tax under the provisions of respective GST enactments, 2017 - Appeal allowed.

Summary

Issues: Jurisdiction of investigating officer in Goods and Services Tax case

Analysis:
The writ appeal was filed against an order in a writ petition where the appellant sought to prevent an investigation by the Directorate General of Goods and Services Tax Intelligence. The appellant argued that there was no territorial nexus between them, located in Chennai, and the investigating officers in Coimbatore or Madurai. The standing counsel for the respondents contended that the order of the learned Single Judge was well-reasoned and referred to a previous court order covering a similar issue. The court considered the arguments presented by both sides.

The court held that while the investigating officer from the Directorate General of Goods and Services Tax Intelligence had the authority to investigate the appellant, the competent officer for the investigation should be stationed in Chennai where the appellant is located. Therefore, the court allowed the writ appeal, directing the respondents to assign an officer in Chennai to conduct the investigation into the appellant's affairs and issue summons regarding any potential tax evasion under the GST enactments. The judgment concluded with no costs awarded to either party.