HC cancels summon under GST as Petitioner was co-operating

FSM Education Pvt. Ltd. Vs Union of India (Bombay High Court)

Summons cannot be issued where the assessee is cooperating during the inquiry

The Hon’ble Bombay High Court in FSM Education Private Limited v. Union of India, & Ors. [Writ Petition (L) No.30974 of 2021 dated January 10, 2022] set aside the summons issued by the Revenue Department without any details of the inquiry, wherein the assessee was co-operating in furnishing the documents as requisitioned and to provide further details. Held that, summons is a last resort and are not to be issued in a casual manner.

Facts:

FSM Education Private Limited (“the Petitioner”) is a school of music, engaged in the business of recreational activities such as teaching music to school children and other enthusiasts either at its teaching center or at a school. The Revenue Department (“the Respondent”) issued various summons to the Petitioner under Section 70 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) for appearance and to submit certain documents, without any details of the inquiry, wherein, the Accounts Manager of the Petitioner was grilled and interrogated and was subjected to cross-questioning. Further another summon was issued to one of the Directors of the Petitioner for appearance, producing documents and providing oral evidence.

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