In this case, the petitioner is challenging an order passed by the Competition Commission of
India (CCI), specifically the National Anti-Profiteering Authority, under the Central Goods &
Services Tax Act, 2017. The petitioner argues that the order violates the principles of natural
justice because they were not provided with copies of reports submitted by the Director
General of Anti-Profiteering (DGAP), which played a significant role in the decision. The
petitioner also raises concerns about the order relating to a different project not mentioned in
the complaint and questions the Authority’s jurisdiction to do so.
The respondents argue that there was no violation of natural justice since the order is favorable
to the petitioner. They claim that the Authority accepted most of the petitioner’s contentions
and remanded the matter to the DGAP for further verification. They also contend that the
Authority has the power to direct investigations into other projects, even if not initially part of
the complaint, under Rule 133(5)(a) of the Central Goods & Services Tax Rules, 2017.
The court finds that the petitioner’s right to natural justice was indeed violated as they were
not provided with unfavorable DGAP reports, which they had no opportunity to address.
Despite the respondents’ claim that the order is favorable, the Authority has not terminated
proceedings and instead issued further directions for investigation. Therefore, the court sets
aside the impugned order and remands the matter to the Authority for a fresh consideration
that includes all contentions raised by the parties. The court clarifies that all rights and
contentions of the parties remain reserved.
| SW Point of View: In this case, the petitioner has raised valid concerns about fairness in a tax-related matter. They argue that they weren’t given access to crucial reports that influenced the decision, violating the principles of natural justice. The court has recognized this issue and has sent the case back to the Authority for a fair and comprehensive review, considering all parties’ arguments. It’s a reminder of the importance of due process in legal proceedings, even when the outcome may appear favorable at first glance. |
Source: 2023 (9) TMI 1053 – DELHI HIGH COURT
