Summons u/s. 70 of CGST Act cannot be considered as initiation of proceedings: Writ dismissed as premature

Md. Aniqul Islam Vs Directorate of Goods And Services Tax Intelligence (Delhi High Court)

Delhi High Court held that summons under section 70 of the Central Goods and Services Tax Act [CGST Act], is issued for gathering information and providing an opportunity to produce documents, it cannot be considered to be initiation of proceedings against the petitioner. Thus, writ dismissed as premature.

Facts- Petitioner is engaged into a small-scale business to supply ‘Bidi‘ since 2020 in some pockets of East Delhi. The present writ petition under Articles 226/227 of the Constitution of India has been filed on behalf of the Petitioner Md. Aniqul Islam, to challenge Summons dated 06.05.2024 issued under Section 70 of the Central Goods and Services Tax Act, 2017.

Conclusion- Held that for the purposes of Section 70 CGST Act, a summons is issued primarily for gathering information and for providing an opportunity to produce documents, etc. Hence, issuance of summons under Section 70 CGST Act cannot be considered to be initiation of proceedings against the Petitioners. Even otherwise, in case there is a possibility of arrest in the future, there are sufficient inherent safeguards contained in Section 69 prior to the affecting arrest of the accused persons. In view of the same, the present Writ Petitions, are premature and liable to be dismissed. However, the Petitioners would be at liberty to approach the appropriate forum at the appropriate stage.