Bhumi Associate Vs Union Of India

1. We have heard all the learned counsel appearing for the writ-applicants. We have also heard Mr. Devang Vyas, the learned Additional Solicitor General of India appearing for the respondents.

2. The officers of the concerned department who were asked to join the video conference did join, but at a very later stage. They were unable to witness the discussion that took place between the Court and Mr. Vyas. We propose to pass an interim order issuing the following directions.

“The Central Board of Indirect Taxes and Customs as well as the Chief Commissioner of Central/ State Tax of the State of Gujarat are hereby directed to issue the following guidelines by way of suitable circular/instructions:

(1) No recovery in any mode by cheque, cash, e-payment or adjustment of input tax credit should be made at the time of search/inspection proceedings under Section 67 of the Central/Gujarat Goods and Services Tax Act, 2017 under any circumstances.

(2) Even if the assessee comes forward to make voluntary payment by filing Form DRC-03, the assessee should be asked/ advised to file such Form DRC-03 on the next day after the end of search proceedings and after the officers of the visiting team have left the premises of the assessee.

(3) Facility of filing complaint/ grievance after the end of search proceedings should be made available to the assessee if the assessee was forced to make payment in any mode during the pendency of the search proceedings.

(4) If complaint/ grievance is filed by assessee and officer is found to have acted in defiance of the afore-stated directions, then strict disciplinary action should be initiated against the concerned officer.”

3. Mr. Devang Vyas, the learned Additional Solicitor General of India has taken the pains to address this Court from the hospital room. Mr. Vyas is not well and has been hospitalized. Mr. Vyas may respond day after tomorrow to the aforesaid directions, which we propose to issue. We direct all officers to once again join the video conference day-after tomorrow, but this time, they should join well in time.

Post all the matters on 18/02/2021 on top of the board.

1. Pursuant to the our order dated 16th February 2021, the officers of the DGGI, Surat namely, (1) Dr. Satish Dhavale, (2) Shri Pramod Kumar, (3) Shri BBL Verma, (4) Shri Yogin B. Vyas, (5) Shri Ajay Kumar Tomar, (6) Shri R.K. Mishra, (7) Shri Yogesh Shaw, (8) Shri Kishore Upadhyay, (9) Shri B.S. Rathod, and (10) Shri Abhinav Chaowdhary, have joined the video conference.

Dr. Satish Dhavale, the Additional Director General, Surat, took the lead when the officers were called upon to respond to the writ­applications which have been filed complaining of the undue harassment etc.

We inquired with Dr. Satish Dhavale as to whether he is aware of the developments that have taken place over a period of time. According to Dr. Satish Dhavale, an appropriate inquiry has been initiated and the allegations which have been levelled in all the writ­ applications shall be looked into by an appropriate authority.

2. Mr. Devang Vyas, the learned Additional Solicitor General of India, submitted that as this Court is inclined to issue few directions as noted in the order dated 16th February 2021, such directions will have to be issued to the Central Board of Indirect Taxes and Customs [CBIC]. It is pointed out by Mr. Vyas that the CBIC is not a party respondent in any of the writ­ applications and he will have to discuss the issue with the CBIC.

3. In view of the above, all the learned counsel appearing in respective writ­ applications shall implead the CBIC as the party respondent in their respective writ­ applications. The cause ­title be amended accordingly. Mr. Devang Vyas, the learned Additional Solicitor General of India, waives service of notice for and on behalf of the CBIC. Mr. Vyas shall discuss the matter seriously with the highest authority of the CBIC. We put the CBIC to notice as to why the guidelines as stated in the order dated 16th February 2021 should not be issued by way of Circular/ Instructions.

4. We have been assured by Dr. Satish Dhavale that there shall not be any further complaint against the officers of the department of undue harassment, threat, pressure, etc. Dr. Dhavale has assured that the inquiry or investigation that may be undertaken shall be in accordance with law.

5. We would not have asked the officers to join the video conference but for the serious allegations which have been levelled in the respective writ ­applications. We do not intend to discourage or lower down the morale of all the officers before us. Our endeavour is only to bring it to their notice that they should act and perform their duties within the four corners of law. They should not take law in their hands. On the contrary, this Court has always appreciated the efforts put in by the officers in catching hold of fraudsters and all those persons involved in the huge scam of tax evasion etc. It shall be open for the officers to conduct the search proceedings under Section­ 67, but, strictly in accordance with law.

6. Post these matters for further hearing on 23rd February 2021. On the next date of hearing, the officers shall not join the video conference. Our message to all the officers before us is loud and clear.