M/S Alfa Ingot PVT. LTD. vs. Commissioner Of The C G S T Commissionerate At Dehradun
Held
The Court held that a writ petition is not maintainable against a show cause notice or a summoning order for the production of documents. However, considering the apprehension of the petitioners and the submissions made, the Court directed the petitioners to appear before the summoning authority within 15 days. If the authority desired to arrest the petitioners, it was mandated to comply with the provisions of Section 69(1) of the CGST Act in letter and spirit. This means the Commissioner must arrive at a definite conclusion, based on credible material, that an offence has been committed before authorizing an arrest, and must record the reasons and material considered for such authorization. A violation of this direction would be considered contempt of court. The Court relied on its previous decision in Himgiri Ispat Pvt. Ltd. Vs. Commissioner of the CGST, Dehradun.
Facts
M/s Alfa Ignot Pvt. Ltd. and others (petitioners) filed a writ petition before the Uttarakhand High Court challenging a summoning order (Annexure No. 5) issued by the Senior Intelligence Officer, DGGI, Meerut, under Section 70 of the Central Goods and Services Tax Act, 2017. The petitioners sought to quash the summoning order and sought a direction commanding the respondent authority not to arrest them during pre-inquiry proceedings. They expressed readiness to cooperate with the inquiry. The summoning order was issued to petitioners no. 2 and 3.
Key Issues
1. Whether a writ petition is maintainable against a summoning order issued under Section 70 of the CGST Act for production of documents and recording of statements. Petitioners' contention: The petitioners sought to quash the summoning order and prevent their arrest during pre-inquiry proceedings, arguing for the protection of their liberty. They were prepared to cooperate with the inquiry. Respondents' contention: The respondents issued the summoning order under Section 70 of the CGST Act. The judgment does not explicitly record arguments from the respondents regarding the maintainability of the writ petition, but their counsel appeared and made submissions.
Sections Cited
Section 70, Section 69(1)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Writ Petition No. 2589 (MS) of 2021
M/s Alfa Ignot Pvt. Ltd. and others. .......…......Petitioners.
Through: Shri S.K. Posti, learned Sr. Advocate assisted by Shri Ashutosh Posti, learned counsel for the petitioners.
-Versus-
Commissioner of the CGST, and others. ……...Respondents.
Through: Shri Shobhit Saharia, learned counsel for the respondents.
Date of Hearing and Order : 06.07.2022
Shri Sanjaya Kumar Mishra, J. (Upon hearing of learned counsel for the parties, the Court has passed the following Orders):
By filing this writ petition, the petitioners have prayed for the following reliefs: “i. Issue a suitable writ, order or direction in the nature of certiorari, calling the record of the case and quash the summoning order issued to the petitioners. (Annexure No. 5 to W.P.) ii. Issue a suitable writ, order or direction in the nature of Mandamus commanding the respondent not arrest the petitioners in pre inquiry proceeding in pursuance of
The judgment continues below.
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