Independently investigating different matters without overlapping under the CGST Act 2017.

JUDGMENT

Karamjit Singh, J. - Case has been heard through video conferencing on account of COVID-19 Pandemic.

2. The petitioner has filed this petition seeking quashing of summons dated 8.12.2020 (Annexure P-14) by way of writ of Certiorari and further to restrain Respondent No.1-Additional Director General, Ludhiana Zonal Unit, Directorate General of GST Intelligence from carrying out further investigation against him.

3. As per the petitioner, he is proprietor of M/s R.K.M. Steels Industries, Kanpur, which is engaged in trading of iron and steel products. In October, 2020, the officials of Commissioner, Central Goods and Services Tax, Kanpur-respondent No.2 initiated an investigation against the petitioner alleging misuse of Input Tax Credit (hereinafter referred to as 'ITC'). The Directorate General of GST Intelligence, Ludhiana (hereinafter referred to as 'DGGI, Ludhiana') initiated another investigation alleging misuse of ITC by the petitioner and its sister concern M/s ESA Steel Rolling Mills. On 4.12.2020 the officials of DGGI, Ludhiana searched residential premises of the petitioner and office of M/s ESA Steel Rolling Mills, which is a proprietorship concern of Smt. Ereena Mishra wife of the petitioner. The DGGI, Ludhiana acting beyond its jurisdiction, has initiated investigation with regard to same allegations, which are already under investigation by respondent No.2. Even officials of DGGI, Bhopal have also issued summons under Section 70 of Central Goods & Services Tax Act, 2017 (hereinafter referred to as 'CGST Act 2017') with regard to the same allegations, which are being looked into by respondent No.2. The investigations being carried out by Respondent No.1 and DGGI Bhopal being overlapping the initial investigation conducted by respondent No.2, are unwarranted and in violation of the provisions of Section 6 of CGST Act, 2017.

4. In response to the notice of motion, Respondent No.1 filed written reply, contesting the claim of the petitioner.

5. The petitioner has filed replication controverting the stand taken by the Respondent No.1 in it's written statement and reiterated the averments as made in the petition.

6. We have heard the counsel for the parties.

7. The counsel for the petitioner inter alia contended that once the investigation has been initiated by respondent No.2-Commissioner, Central Goods and Services Tax, Kanpur the officials of DGGI Ludhiana and DGGI Bhopal have got no power to start fresh investigation regarding the same allegations. Such action is not permissible under the provisions of Section 6(2)(b) of CGST Act, 2017. The overlapping investigations being initiated by DGGI, Ludhiana and DGGI Bhopal are totally illegal and beyond jurisdiction. Once the 'Proper Officer' as per Section 6 of CGST 2017 is seized of the matter, the same cannot be simultaneously put to another investigation by the Officer appointed under Section 3 of CGST Act, 2017. The subsequent investigations conducted by DGGI, Ludhiana and DGGI Bhopal deserve to be quashed.

8. On the other hand, counsel for the Respondent No.1 submitted that the subject matter involved in the investigations carried out by respondent No.1, respondent No.2 and DGGI, Bhopal are entirely different from one another. The counsel for the Respondent No.1 also gave assurance that on-going investigation by DGGI, Ludhiana would not cover the aspects already under investigation by any other Government Authority including the 'Proper Officer' appointed under Sections 3 and 6 of CGST Act, 2017. It was prayed that the writ petition deserves to be dismissed being totally misconceived.

9. We have considered the arguments addressed by counsel for the parties.

Section 6(2)(b) of CGST Act 2017 reads as under:-

Section 6. Authorization of Officers of State Tax or Union Territory Tax as proper officer in certain circumstances.

(1) xxxxxx

(2) Subject to the conditions specified in the Notification issued under sub-Section (1).

(2)(a) xxxxxx

(2)(b) Where a proper officer under the