GST Update

Desk of CA. Praveen Sharma – 762 Series (CAPS)
Calcutta High Court in the Case of Truvolt Engineering Company Pvt. Ltd

Writ Petition Filed:
The petitioner challenged investigation notices dated 21/22 November 2024 and 30 May 2025, arguing that they overlap with an existing audit-based Show Cause Notice (SCN) issued on 29 November 2024 for FY 2019–22 under Section 65 of the CGST/WBGST Act.

Petitioner’s Argument:

• Once an audit and SCN are initiated for a particular period, parallel proceedings (like search and seizure by DGGI or State authorities) for the same period are unwarranted.

• The State’s search (initiated in August 2024) is still incomplete, and fresh actions by other authorities lead to duplication and harassment.

DGGI’s Stand:

• There is no legal prohibition on conducting search and seizure, even where an audit is ongoing.

• Investigations target different aspects (such as suppliers) and potential fraud, which justifies continued enquiry.

State’s Submission:

• Confirmed initiation of proceedings under Section 67, which are still pending and have not yet been concluded.

Court’s Observation:

• Legally, there is no bar against simultaneous actions under Sections 65 (Audit), 66 (Special Audit), and 67 (Inspection/Search/Seizure).

• However, multiple parallel enquiries for the same period by different authorities should be avoided unless the earlier process is logically and lawfully concluded.

Interim Relief:

• The Court directed that DGGI must not proceed with investigations for the same period already covered under the State’s ongoing proceedings.

• DGGI’s enquiry should be limited strictly to other periods not overlapping with the State’s current action.

Further Proceedings:

• Affidavit-in-opposition to be filed within 6 weeks.

• Petitioner’s reply to be filed within 4 weeks thereafter.

• Liberty granted to mention the matter for hearing once affidavits are complete.

LINK: Desk of CA. Praveen Sharma – 762 Series (CAPS)Regards,

Regards,
CAPS