Order Date – 05 January 2024

Parties:M/s R.C. Infra Digital Solutions Vs. Union of India and others 

Facts –

• The Petitioner, M/s R.C. Infra Digital Solutions, was coerced to deposit an amount of Rs. 40,00,000/- under the threat of arrest by the officers of DGSI during a search conducted at the premises of the petitioner on 06.06.2023.
• The petitioner has contented that the same set of documents have already been furnished to the Anti Evasion Wing of GST and now asking of the same set of documents by the officers of DGSI was not legal on the ground of exercise of parallel jurisdiction.

Issue –

• Whether the Notification No. 14/2017- Central Tax dated 01.07.2017 ultra-vires to the power of the Central Government?

Order –

• The Divisional Bench of Hon’ble High Court observed that  the respondents being the officer of the Central Tax under the CGST Act, 2017 by virtue of the Notification No. 14/2017 dated 1.7.2017, they were also assigned the powers of proper officer by the Board vide Circular No. 3/3/2017-GST dated 5.7.2017 issued in exercise of the powers conferred by Clause (91) of Section 2 of the CGST Act, 2017 read with Section 20 of the IGST Act.
• Therefore, the respondents are proper officer in relation to the function to be performed under the CGST Act, 2017 as contemplated under Section 2 (91) of the CGST Act, 2017, and as such, was entitled to issue summons under Section 70 of the CGST Act, 2017 in connection with the inquiry initiated against the petitioner.
• It may be noted that the communication dated 10.05.2023 was issued by the Anti-Evasion Department of the GST for limited inquiry in connection with irregular availment of ITC during the period 2018-19 to 2022-23 under the CGST, 2017 whereas the officers of the DGSI have issued summons for making inquiry in the entire activities of the petitioner under the GST Act, 2017. Apparently, the inquiry being conducted by the Ant evasion department and the inquiry being conducted by the officers of DGSI does not appears to be over-lapping.
• In the instant case, the petitioners having made payment under Section 74 (5) of the CGST Act, 2017, they appear to have informed the Proper Officer of such payment in the Form GST DRC-03 (Annexure No. 7) as contemplated in Rule 142(2) of the said Rules. It is needless to say that the said payment shall be dealt with or adjusted by the concerned respondent No.3 in accordance with law more particularly as per the provisions contained in Section 74 of the CGST Act, 2017.
• Hence the Court does not find any merits in the present petition and as such the same is dismissed.