Analysis of phrase “Reasons to Believe” in light of Delhi HC decision under GST
- Blog|GST & Customs|News|
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- By Taxmann
- Last Updated on 18 September, 2021
Kartik Singhvi –  130 taxmann.com 269 (Article)
Reason to believe is a common feature in taxing statutes and it has been considered to be the most salutary safeguard on the exercise of power by the officer concerned. In the case of R.J. Trading v. Commissioner of CGST  128 taxmann.com 344 (Delhi), the High Court has analysed that the power under section 67 read with rule 139 can only be exercised if such officer has “reason to believe” that taxable person suppressed transaction or indulged in contravention of any provision of the CGST Act.
In this article, the author has discussed the meaning of phrase “Reasons to Believe” in light of Delhi High Court decision and how this phrase would be different from the context of reasons to suspect.
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