HC rejects plea that summons can be issued only after CGST Section 73 decision

Om Shiv Associates Vs Union of India & Ors. (Madhya Pradesh HC)

Madhya Pradesh High Court has rejected the plea that proceedings under Section 70 of the CGST Act, 2017, relating to summons, can only be taken recourse to after decision under Section 73, relating to demand of tax. The High Court in this regard declined to quash the notice for personal hearing.

The petitioner vide present petition seeks quashment of the notice for personal hearing and direction for the Authorities to decide his representation before initiating any proceedings.

These submissions when tested on the anvil of the stipulation contained under Section 70 of the (CGST) Act, 2017 which stipulates that the proper officer under this Act shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry in the same manner, as provided in the case of civil court under the provisions of the Code of Civil Procedure, 1908 and Sub­section (2) of Section 70 of the Act of 2017 envisages that every such inquiry referred to in Sub-section (1) shall be deemed to be a “judicial proceedings” within the meaning of section 193 and section 228 of the Indian Penal Code, and the fact as borne out from the record that, prima facie, opinion has been formulated that the petitioner has evaded the tax, we are not inclined to cause any indulgence. The petitioner has utterly failed to establish that the proceedings under Section 70 of the (CGST) Act, 2017 can only be taken recourse to, after decision under Section 73 of the Act.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

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