GST
DGGI summons to a director in a fake ITC case
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Facts
Yes. A summons under Sec 70 is a judicial proceeding and must be obeyed. If the date is not possible, ask for another date in writing.
Provisions and law
- Sec 70(1), CGST Act 2017A proper officer may summon any person to give evidence or produce documents in an inquiry; the proceeding is a judicial proceeding.
- CBIC Instruction 03/2022-23 (GST Investigation)Summons must be issued with recorded reasons, carry a DIN, and senior management should not be summoned first without reason.
Analysis
Check that the summons carries a DIN and states whether the person is called to give evidence or documents. CBIC Instruction 03/2022-23 says senior management should not be summoned first unless their role is clear. Carry the documents asked for, and take a lawyer's advice before appearing, especially if the amount is large. Repeated non-appearance can lead to a complaint before a magistrate.
Conclusion
- Read the summons and check the DIN and purpose.
- Collect the documents listed.
- Consult a lawyer before appearing.
- Attend on the date, or seek a new date in writing.
- Keep a copy of any statement you sign.
Never ignore a summons; non-appearance makes the position worse.
A Savvy can do this for you
Reply to fake ITC notice when a supplier is found non-existent, Sec 16(2)(c)
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