GST summons must indicate the purpose of issuance clearly and should not be issued in casual manner: Bombay HC

GST summons must indicate the purpose of issuance clearly and should not be issued in casual manner: Bombay HC 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 centre or at a school. The Petitioner is registered under the Central Goods and Services Act 2017. The Petitioner received a communication dated 2 December 2021 on the letter head of the Office of the Commissioner of CGST, Mumbai West, requesting to submit certain documents within a period of four days from the date of receipt of the Notice. It is the case of the Petitioner that it has submitted various documents from time to time to the Respondents. Respondent No.3 issued a summons on the Petitioner on 15 December 2021, under Section 70 of the Central Goods and Services Act, 2017 (for short the said GST Act) to remain present before Respondent No.3 on 16 December 2021 at 11.20 a.m. The said summons were issued to the Petitioner company without any details of the inquiry. The Petitioner deputed Mr. Piyush Patel, Accounts Manager of the Petitioner. It is the case of the Petitioner that the said Piyush Patel was grilled and interrogated for a period of about five hours from 4.00 p.m. to 9.00 p.m. and was subjected to cross-questioning which was contrary to the guidelines issued by Respondent No.1. The learned Counsel appearing for the Petitioner relied on Question 34 of the FAQs dated 15 December 2018 issued by GST Department and would submit that it is clear beyond reasonable doubt that the assessee can be summons only as a last resort and as far as practicable, details can be obtained from an assessee by way of an ordinary letter. It is submitted that all the documents are furnished as requisitioned by the Respondents. The summons cannot be issued to coerce and pressurize the Petitioner or its director. He submits that Ms. Tanuja Gomes is not personally familiar with the issue of exemption regarding payment of GST, she being a musician.

Order of Court

(a) The Respondents are directed to inform the Petitioner the list of further documents required to be produced by the Petitioner and other requisite queries to which, they seek clarifications from the Petitioner. Such list of documents along with queries shall be furnished to the Petitioner within one week from today. (b) The Consultants, M/s MGB & Co. of the Petitioner would furnish all the documents on behalf of the Petitioner and would furnish such details as per the requisitions as would be made by the Respondents, within the prescribed time or such period as may be extended by the Respondents. The said Consultant shall co-operate with the Respondents in furnishing the documents and the information. (c) It is for the Respondents to decide whether Ms. Tanuja Gomes, director of the Petitioner shall be still called for recording of evidence after furnishing of the documents and information by the Consultant of the Petitioner. (d) If any summons is issued by the Respondents, the summons shall indicate the purpose of issuing summons to the Petitioner with clear seven days notice before fixing the date for recording the statement of the said Director Ms. Tanuja Gomes. Ms. Tanuja Gomes shall appear before the Authorities on the appointed date and cooperate with the Respondents in recording her evidence.