The summons issued under Section 70 of the Central Goods and Services Tax Act, 2017 (CGST Act) is a legal instrument used by the tax authorities to call individuals for providing evidence or producing documents during an inquiry. Let’s address your questions:
Validity of the Summons:
Summons under Section 70 can be issued by the proper officer to any person whose attendance is necessary for giving evidence or producing documents.
The summons should follow the provisions of the Code of Civil Procedure, 1908 (CPC), which governs the issuance of summons in civil cases.
However, it’s essential to ensure that the power to issue summons is exercised judiciously and with due consideration.
In some instances, summons have been issued routinely to senior officials of companies, even for material evidence or documents that are available online in the GST portal.
The summons should be validly addressed, prepaid, and sent by registered post acknowledgment due (RPAD). Refusal of acceptance can still be treated as valid service12.
How Should the Firm Respond?:
The firm should take the following steps:
Review the Summons: Carefully examine the summons to understand the specific requirements and the purpose of the inquiry.
Check Authenticity: While the summons may not be visible in the GST portal, it’s essential to verify its authenticity. You can do this by appearing in person or through an advocate in the court hall on the specified date when the case number is called out3.
Gather Documents: Collect all the requested documents, including trading records, P&L statements, balance sheets, bank statements, stock registers, ITC registers, purchase bills, and sale bills for the relevant years (2018-2019 to 2023-24).
Consult Legal Counsel: Seek legal advice from a qualified professional. An advocate experienced in GST matters can guide you on the appropriate response.
Attend the Inquiry: Attend the inquiry on the scheduled date. If the summons is valid, it’s crucial to comply with the requirements.
Provide Information: Cooperate with the tax authorities during the inquiry. If you have any objections or concerns, discuss them with your legal counsel.
Keep Records: Maintain records of your compliance, including proof of attendance, submission of documents, and any communication with the tax department.
Remember that the firm’s regular GST compliance and payment history will be relevant during the inquiry. It’s advisable to handle the situation diligently and transparently.
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