GST inquiry summons must follow fair procedure, with stated purpose and advance notice before any further examination.

In a GST inquiry, the Bombay High Court held that a director's summons need not be sustained where the taxpayer had expressed readiness to cooperate by producing documents and further particulars through consultants. The Court permitted the inquiry to continue, but required the authorities first to communicate the additional documents and queries needed and to proceed consistently with fair procedure. Any fresh summons had to state its purpose and give seven days' notice before the statement date.

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Issues: Whether the summons issued to the petitioner's director in the course of the GST inquiry required interference, and what procedural safeguards were to govern any further summons and examination.

Analysis: The petitioner had expressed willingness to cooperate by furnishing documents through its consultants and by providing further particulars as required. In the circumstances, the earlier summons issued to the director was held not to survive. At the same time, the respondents were permitted to continue the inquiry, but were directed to first communicate the further documents and queries required, and to act in a manner consistent with fair procedure. If the director were to be summoned again, the summons had to disclose its purpose and give seven days' notice before the date fixed for recording statement, so that she could appear and cooperate.

Conclusion: The summons dated 23 December 2021 was not sustained, and any further summons could be issued only in accordance with the safeguards directed by the Court.

Ratio Decidendi: In a GST inquiry, summons should not be employed in a casual manner and, where cooperation and document production are forthcoming, the authority may proceed through requisitions and only thereafter resort to summons with clear notice and stated purpose.

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