Telangana HC in the Case of Agarwal Foundries Private Limited Rama Towers

Case Covered:

Agarwal Foundries Private Limited Rama Towers

Versus

Union of India

Facts of the Case:

The question which arises for consideration in this Writ Petition is whether officials belonging to the GST Intelligence Department of the Union of India such as respondent nos. 5 to 9 in the Writ Petition can resort to physical violence while conducting an interrogation of the petitioners and their employees in connection with proceedings initiated against the petitioners by the respondents under the CGST Act, 2017 and IGST Act, 2017.

Observations:

In view of the admitted fact that the search operations were continued well past midnight and summons were issued to 2nd petitioner to appear at 00:30 hrs on 12.12.2019, we do not accept the plea of the respondents that they did not act contrary to the established procedure, that the search proceedings were carried out under proper and applicable law and procedure, and no harm or damage were made to any human/person or property and no sentiments were hurt.

The Decision of the Court:

We, therefore, allow the Writ Petition with the following directions:

(a) the respondents shall not use any acts of violence or torture against petitioner nos.2 to 4 or their employees in furtherance of inquiry proceedings F.No.574/ CE / 198 / 2019/ INV initiated against the 1st petitioner.

(b) the inquiry in the above proceedings against the 1st petitioner shall not be handled by the 5th respondent, and he shall not participate in such inquiry, and it shall be transferred to another official to be designated by the 2nd respondent;

(c) any interrogation of petitioner nos. 2 to 4 or their employees shall be between 10:30 a.m. and 05:00 p.m. on weekdays in the visible range of an Advocate appointed by them, who shall not be in hearing range;

(d) the petitioner nos.2 to 4 alone can be summoned to New Delhi for the purpose of the above inquiry by the respondents on one occasion for two to three days, and rest of interrogation and those of their employees shall be conducted at Hyderabad by the respondents; and

(e) the respondents shall adhere to the provisions of the CGST Act, 2017 in conducting search, investogation or inquiry in relation to the alleged tax evasion by the petitioners.

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