Delhi HC dismisses conducting of alleged parallel investigation by various jurisdictional authorities

Last updated: 15 January 2022

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The Delhi High Court has dismissed a petition challenging parallel investigations by various GST authorities against companies suspected of availing inadmissible Input Tax Credit. The court ruled that while the GST Act aims to prevent taxpayers from facing multiple agencies for the same transactions, a blanket prohibition on concurrent investigations is not feasible. It affirmed that investigations can be transferred to a single authority, like the DGGI, if the complexity or nature of the inquiry necessitates it, and that the relevant circular does not cover all possible scenarios.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in M/S. Indo International Tobacco Ltd. & Ors. v. Shri Vivek Prasad, Additional Director General, DGGI & Ors. [Cont.Cas(C) 751/2021 & Cm No.35806/2021 dated January 11, 2022] dismissed the applicability of Circular in a petition challenging the conduct of alleged parallel investigation by various jurisdictional authorities and affirmed the investigations conducted various jurisdictional authorities of the Revenue Department into entities having common nexus. Held that, Circular cannot be extended to cover all and myriad situations that may arise in the administration and the functioning of the GST structure.

Citation :
Cont.Cas(C) 751/2021 & Cm No.35806/2021 dated January 11, 2022

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