2022 (2) TMI 102 - HC - GST

Validity of summon issued - powers to be exercised under various provisions of the CGST Act including permission of summon under Section 70 thereof - circular dated 05.07.2017 issued by the Central Board of Excise and Customs - HELD THAT - Issue notice, returnable on 23.03.2022. Learned counsel Mr. Kinshuk Jain waives notice on behalf of the respondents. His name be shown in the cause list. Prima facie it would appear that issuance of summons after the full enquiry was over and which also resulted into not only issuance of show cause notice but the order in original being passed, was not permissible. Under the circumstances the impugned summons are stayed.

Summary

Issues:
Challenge to summon issued by Superintendent of CGST and challenge to circular assigning powers under CGST Act.

Analysis:
The petitioner challenged a summon dated 28.12.2021 issued by the Superintendent of CGST and a circular dated 05.07.2017 assigning powers under various provisions of the CGST Act. The petitioner contended that the Central Board of Excise and Customs (CBEC) lacked the authority to assign or delegate powers as done in the circular. Citing a recent Supreme Court decision, the petitioner argued that the summons were issued after the completion of the search process, issuance of show cause notice, and passing of the original order, making it impermissible for the respondent to summon the petitioner.

The Court issued notice returnable on 23.03.2022, with the counsel for the respondents waiving notice. The Court observed prima facie that issuing summons after the completion of the full inquiry, resulting in the issuance of show cause notice and passing of the original order, was not permissible. Consequently, the Court stayed the impugned summons pending further proceedings.

This judgment highlights the importance of procedural compliance and the limitations on the authority to issue summons under the CGST Act. It emphasizes the need for proper adherence to legal requirements and the prohibition against summoning parties after the completion of relevant processes. The decision also underscores the significance of recent judicial precedents in interpreting and applying legal provisions in similar cases.