Answer

GST

DGGI summons to a director in a fake ITC case

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  1. 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.

  2. 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.
  3. 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.

  4. Conclusion

    1. Read the summons and check the DIN and purpose.
    2. Collect the documents listed.
    3. Consult a lawyer before appearing.
    4. Attend on the date, or seek a new date in writing.
    5. Keep a copy of any statement you sign.

Never ignore a summons; non-appearance makes the position worse.

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Reply to fake ITC notice when a supplier is found non-existent, Sec 16(2)(c)

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