SC Upholds GST Circular on Proper Officer Assignment Under Section 168

Lovelesh Singhal Vs Central Board of Indirect Taxes & Customs & Ors. (Supreme Court of India)

The proceedings arose from a challenge to Circular No. 3/3/2017 dated 5 July 2017, issued in relation to assignment of functions to officers as “proper officers” under the CGST Act, 2017, and a summons dated 3 November 2025 under Section 70 of the CGST Act issued to the petitioner in an inquiry concerning M/s Midas Marketing Inc. The summons required the petitioner to appear for tendering a voluntary statement and producing bank statements, sales invoices and ledger relating to M/s Midas Marketing Inc.

Before the Delhi High Court, the petitioner sought quashing of the circular and summons and a stay of the summons. The principal challenge to the circular was based on Sections 2(16), 2(25), 2(91) and 168 of the CGST Act. The petitioner contended that the Board lacked authority to assign functions to proper officers and that such authority vested in the “Commissioner in the Board”. It was argued that the circular was therefore without authority of law and that the officer concerned was not empowered to issue the summons under Section 70. The petitioner also relied upon interim orders of the Rajasthan High Court in M/s. ACME Cleantech Solution Pvt. Ltd. v. Union of India & Ors., and separately contended that the summons was served after the scheduled date of appearance.