2022 (12) TMI 1231 - HC - GST

Release of seized perishable goods - conclusion of adjudication proceedings expeditiously - seeking cross examination of the Panch witnesses, other witnesses whose statements are relied upon in the Show Cause Notice and the officers of the DGGI - allegations made against the petitioners is that they had fraudulently availed input tax credit - HELD THAT - The learned counsel for the petitioners states that although the replies to the Show Cause Notice (SCN No. 8/2021) were termed as interim replies, the same may be considered as final and the adjudicating authority may proceed on the said basis. Insofar as the petitioner s request for permission to cross-examine certain witnesses and officers is concerned, this Court does not consider it apposite to decide the same in these proceedings - The adjudicating authority is requested to complete the proceedings pursuant to the show cause notice as expeditiously as possible and in any event within a period of four months from today. The adjudicating authority shall consider and dispose of the petition s application for cross examination of witnesses/officers in accordance with law. The petition is disposed of.

Summary

Issues Involved:
1. Delay in concluding adjudication proceedings and release of seized goods.
2. Request for cross-examination of witnesses and officers mentioned in the Show Cause Notice.

Analysis:

Issue 1: Delay in concluding adjudication proceedings and release of seized goods
The petitioners filed a writ petition seeking a mandamus to direct the Respondent Authority to conclude the adjudication proceedings promptly and release the seized perishable goods. The search and seizure operations conducted on the petitioners' premises led to the seizure of 375 boxes/cartons on specific allegations of fraudulent input tax credit availed by the petitioners. The Court acknowledged the issuance of a show cause notice under Section 130 of the Central GST Act, 2017, denoted as SCN No. 8/2021, which remained pending for adjudication. Despite the petitioners submitting an interim reply to the show cause notice, the adjudication process was yet to be finalized. The Court, emphasizing the need for expeditious resolution, directed the adjudicating authority to complete the proceedings within four months from the date of the judgment.

Issue 2: Request for cross-examination of witnesses and officers
The petitioners also requested permission to cross-examine certain officers of the Directorate General of GST Intelligence (DGGI) and other witnesses mentioned in the petition. The petitioners' counsel argued that the interim replies submitted should be considered final for the adjudication process to proceed. However, the Court refrained from deciding on the cross-examination request within the current proceedings. Instead, it instructed the adjudicating authority to consider and dispose of the petitioners' application for cross-examination of witnesses and officers in accordance with the law. The judgment concluded by disposing of the petition in the aforementioned terms, maintaining a balance between the petitioners' procedural requests and the need for a timely adjudication process.