Amit Mahajan JUDGMENT
Vibhu Bakhru, J.
1. The petitioner has filed the present petition principally challenging the search/inspection conducted at his business premises situated at 3460/1, Jai Mata Market, Tri Nagar, Delhi-110039 and Godown at E-285, Sector-4, Bawana, Delhi-110039 on 18.10.2022 under Section 67(1) of the Delhi Goods and Services Tax Act, 2017 (hereafter 'the DGST Act'). The petitioner claims that during the course of the search/inspection, he was compelled to reverse the Input Tax Credit (hereafter 'ITC') amounting to ` 22,14,226/-on account of inadmissible ITC and shortage of cash.
2. The petitioner claims that his statement was recorded at about 11:30 pm on 18.10.2022 and he was compelled to agree to reverse the ITC in respect of certain suppliers whose registration were stated to be cancelled. The petitioner claims that the petitioner's statement as well as the reversal of ITC, was done under duress and while the petitioner was effectively under the control and supervision of officers of the visiting team. The petitioner also claims that the petitioner was under the stress of interrogation as the inspection was continuing from 4:00 pm, earlier that day. The petitioner also claims that although the petitioner had filed FORM GST DRC-03, there was no acknowledgement of receipt by the Department by issuing FORM GST DRC-04.
3. The petitioner also claims that the inspection conducted on 18.10.2022 was illegal as the authorization for the same [(FORM GST INS-01 dated 18.10.2022)] was issued without mentioning any specific reason for the same.
4. The first and foremost question to be examined is whether the inspection conducted by the Delhi GST Authorities was illegal for want of proper authorization.
5. According to the petitioner, the inspection/search conducted on 18.10.2022 under Section 67 of the DGST Act was illegal as the authorization for conducting the search (in FORM GST INS-01) mentioned all the reasons as stated in Section 67(1)(a) of the DGST Act. The petitioner contends that the said authorization is issued mechanically and without application of mind.
6. Rule 139(1) of the Central Goods and Services Tax Rules, 2017 (hereafter 'the CGST Rules') expressly requires that the authorization for conducting a search be issued in FORM GST INS-01. The said form is set out below:
"FORM GST INS-1
AUTHORISATION FOR INSPECTION OR SEARCH
[See rule 139(1)]
To
............................................
............................................
(Name and Designation of officer)
Whereas information has been presented before me and I have reasons to believe that-
A.
M/s.______________________________________________
• has suppressed transactions relating to supply of goods and/or services
• has suppressed transactions relating to the stock of goods in hand,
• has claimed ITC in excess of his entitlement under the Act
• has claimed refund in excess of his entitlement under the Act
• has indulged in contravention of the provisions of this Act or rules made thereunder to evade tax under this Act;
OR
B. M/s.__________________________________________
• is engaged in the business of transporting goods that have escaped payment of tax
• is an owner or ope........