Blog No. 6: Proceedings initiated by DGGSTI wing located in another State

These days, most of the assessees’ are being subjected to investigation proceedings initiated by the DGGSTI wing and that too located in another State. Therefore, a question arises can it be done?

There have been few cases wherein Hon’ble courts had the occasion to deal with these pleas and it was finally held that transfer of proceedings can not be normally permitted because of the risk that local business tycoon can influence the investigating officer.

Also, the directions given by apex court to contain the spread of COVID-19 virus and thus focussing on the possibility to have video conferencing should not be applicable on the investigating proceedings, the Hon’ble Delhi HC observes in case of P.V. Rao WP (C) No. 8975/2020 dated 18.11.2020.
But taking into consideration the risk factors involved in contracting infection of COVID-19, sometimes permission / direction is given to have only one visit of owner of the business and if the employees to be interrogated are huge in number, they can be interrogated by jurisdictional wing of DGGSTI, Telangana HC held in the case of M/s Agrawal Foundries Private Limited Rama Towers and 3 Others Versus UOI & 9 Others – 2020 (11) TMI 269

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