HC: Summons are for gathering information, not ‘initiation of proceedings Dismisses writ as premature {Md. Aniqul Islam v. Directorate General of Goods and Services Tax Intelligence (DGGI){ W.P.(CRL) 1710/2024 & W.P.(CRL) 1861/2024}
Facts
- The Petitioners were engaged in trading/manufacturing of bidi under the brand “UDDAN”.
- Searches were conducted by DGGI at their premises and goods were seized.
- Summons under Section 70 of the CGST Act, 2017 were issued to the Petitioners for inquiry.
- Petitioners challenged the summons alleging:
- Violation of CBIC Circulars
- Summons being handwritten / without DIN
- Mala fide intent and apprehension of arrest
- No Show Cause Notice or adjudication had been initiated at that stage.
Issue
- Whether issuance of summons under Section 70 of the CGST Act amounts to initiation of proceedings and can be challenged at the investigation stage?
Held
- The Delhi High Court held that:
- Summons under Section 70 are only for gathering information and providing an opportunity to produce documents.
- Issuance of summons does NOT amount to initiation of proceedings.
- Writ petitions challenging summons at the investigation stage are premature.
- Adequate safeguards exist under Section 69 of the CGST Act before arrest.
- Accordingly, the writ petitions were dismissed as premature.
