2018 (10) TMI 1656 - HC - VAT and Sales Tax

Action under section 69 read with section 132 of CGST Act - person not participated in the proceedings before the officer concerned - appearance after notice under Section 70 - Held that - The issue requires a scrutiny - it is directed that the petitioner would ensure his appearance in compliance of the impugned notices issued by the Central Intelligence Unit Central GST Meerut Zone Noida - On appearance of the petitioner before the authority concerned it is made clear that he would render all support investigation but he will not be arrested except with the leave of the Court.

Summary

Issues involved:
Interpretation of Section 70 of the Central Goods and Service Tax Act, 2017 regarding actions against individuals not participating in proceedings before the officer concerned.

Analysis:
The judgment revolves around a key issue concerning the interpretation of Section 70 of the Central Goods and Service Tax Act, 2017. The central question is whether, upon receiving a notice under Section 70, an individual who has not participated in the proceedings before the concerned officer can face immediate action under Section 69 read with Section 132. The petitioner raised concerns about a similar situation where an individual was arrested under Section 132(5) immediately upon appearing before the authority after being noticed. This apprehension prompted the filing of the writ petition, highlighting the need for a thorough scrutiny of the issue.

The court, considering the gravity of the matter, issued an interim direction for the petitioner to ensure their appearance in compliance with the notices issued by the Central Intelligence Unit, Central GST, Meerut Zone, Noida. The specific notices mentioned in the judgment were dated 16.08.2018 and 30.08.2018. The petitioner was instructed to appear before the authority concerned by a specified date, i.e., 08.10.2018. It was clarified that upon the petitioner's appearance, they were required to cooperate with the investigation, with the explicit condition that no arrest could be made without the Court's permission.

This judgment underscores the importance of procedural fairness and the protection of individuals' rights when facing legal actions under the GST Act. It emphasizes the need for a balanced approach where individuals are given the opportunity to participate in proceedings and cooperate with investigations without the immediate threat of arrest, highlighting the significance of judicial oversight in such matters.