Dadhichi Iron and Steel (P.) Ltd.  VS Chhattisgarh GST

The current writ petition under scrutiny pertains to the investigation launched by the respondents, along with the summons issued in correlation with this investigation. The petitioner has raised concerns regarding the legality and validity of both the investigation and the summons. The crux of the challenge presented lies in a particular prohibition outlined within the GST Act of 2017. This statutory provision serves as the cornerstone of the petitioner’s argument, suggesting that the actions taken by the respondents are in contravention of this specific bar established by the aforementioned legislation. As such, the petitioner seeks redress and relief from the court, contending that the investigation and accompanying summons are legally impermissible due to the statutory constraints imposed by the GST Act of 2017.

The present writ petition challenges an investigation initiated by the respondents and the summons issued in connection with it, primarily on the grounds of a specific bar under the GST Act, 2017. The petitioner seeks various reliefs, including questioning the authority behind the investigation and summons, obtaining copies of seized documents, quashing the investigation proceedings, and returning seized materials. Additionally, they request a halt to coercive actions during the investigation, adherence to due process and natural justice, and fair adjudication proceedings before any tax recovery or prosecution. Notably, the petitioner expresses willingness to cooperate with the investigation provided certain reliefs are granted.

The petitioner, a registered company under the Companies Act, 1956, operates in the iron and steel trading business, purchasing goods from manufacturers and selling them to various customers across the country. They claim to pay GST on both purchase and sale transactions and assert their entitlement to Input Tax Credit. The respondents allegedly initiated an investigation based on accusations of purchasing goods from bogus dealers and issuing fake invoices. This led to the blocking of Input Tax Credit and subsequent proceedings regarding its illegal availing. A previous writ petition challenged a notice related to this matter, resulting in directions for the petitioner to file a detailed representation or objection, which would be considered by the authorities. The respondent officers have since issued a show cause notice proposing the cancellation of the petitioner’s registration.

The petitioner contends that the investigation and actions taken by the respondents are unlawful, citing violations of statutory provisions and procedural irregularities. They argue for judicial intervention to safeguard their rights, ensure procedural fairness, and prevent arbitrary actions by the authorities. The case underscores broader issues related to tax compliance, procedural fairness, and the balance of power between taxpayers and tax authorities.

The present writ petition challenges an investigation initiated by the respondents and the summons issued in connection with it, citing a specific bar under the GST Act, 2017. The petitioner seeks various reliefs, including a writ of Quo Warranto questioning the authority of the investigation, mandamus to provide copies of seized documents, quashing of the investigation proceedings, and the return of seized materials. They also seek restraint from coercive action during the investigation and adherence to due process and principles of natural justice.

The petitioner, a registered company engaged in the trading of iron and steel items, alleges that it pays GST on purchases and sales and is entitled to Input Tax Credit. The investigation alleges that the petitioner engaged in transactions with bogus dealers and issued fake invoices. Previous legal proceedings resulted in a directive for the petitioner to file detailed objections, and subsequent cancellation and restoration of registration are pending consideration. Show cause notices proposing tax demands were issued, and the petitioner sought clarification to participate effectively in the proceedings.

Despite the ongoing legal process, the respondents conducted a raid on the petitioner’s premises, leading to the arrest of one of its directors. This action prompted the filing of the present writ petition challenging the investigation and associated actions.

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