2021 (8) TMI 1276 - HC - GST

Simultaneous proceedings by two intelligence agencies - investigation in relation to the affairs of the company for the violation of the provisions of GST Act was going on by DGST then the petitioner received summons dated 28th July 2021 from the respondent No. 1-DGGI Meerut Unit - whether the petitioner can be subjected to two intelligence agencies simultaneously for the alleged violations of the provisions of GST Act - HELD THAT - Prima facie the contentions raised by the learned counsel for the respondent No. 1 are untenable for the reason if a citizen is aggrieved by issuance of summons and finds that there is illegality or unconstitutionality therein he has a right to approach the Court. As regards the issue of territorial jurisdiction of this Court is concerned the petitioner company is working in Delhi and it is already under investigation by the Delhi State Goods and Services Tax Unit and the plea of the learned counsel for the respondent No. 1 that no challenge to summons issued by DGGI Meerut Zone can be entertained by this Court is prima facie not correct. List this petition on 21st September 2021.

Summary

Issues:
Challenge to summons issued by multiple intelligence agencies for alleged violations of GST Act.

Analysis:
The petitioner challenged the summons issued by respondent No. 1-DGGI, Meerut Unit, while already participating in investigations by the Delhi State Goods and Services Tax Unit. The petitioner argued that receiving summons from multiple intelligence agencies simultaneously raised the issue of legality and practicality. The petitioner contended that the summons lacked specificity regarding the purpose and year of assessment, citing a previous court decision that favored a cautious approach by intelligence units. The respondent argued that the court lacked territorial jurisdiction to entertain the petition challenging the summons issued by DGGI, Zonal Unit, Meerut. However, the court found this argument untenable, asserting the petitioner's right to challenge the legality of the summons. The court noted that the petitioner's operations were in Delhi and that the challenge to the summons was valid. The court directed the respondent to file a reply affidavit within two weeks and allowed the petitioner to continue participating in the proceedings without facing coercive action until the next hearing date.

This judgment primarily addresses the issue of whether a petitioner can be subjected to summons from multiple intelligence agencies simultaneously for alleged violations of the provisions of the GST Act. The court considered the specificity of the summons, the legality of challenging multiple summons, and the territorial jurisdiction of the court. The court upheld the petitioner's right to challenge the summons and participate in the proceedings, rejecting the argument that the court lacked jurisdiction. The court directed the respondent to file a reply affidavit and scheduled the next hearing date. The judgment ensures the petitioner's right to legal recourse and fair participation in the investigation process, emphasizing the importance of clarity and jurisdiction in such matters.