The petitioner challenged parallel and overlapping investigations conducted by the State GST authorities and the DGGI in respect of alleged fraudulent availment and passing of ITC through fake firms. The factual background showed that for the same period, records had already been seized and proceedings initiated by the State GST authorities pursuant to earlier directions of the High Court that only one agency should conduct inquiry. Despite this, DGGI conducted search, seizure and further inquiry.
The Court examined the statutory scheme and earlier directions and held that once proceedings were already being undertaken by the State GST authorities, initiation of parallel proceedings by another central agency for the same cause and period was impermissible. The Court directed that investigation for the relevant period shall be carried out by one agency alone, in accordance with law.