GST Superintendent's Summons After Completed Proceedings Stayed; Delegation of Powers Under CGST Act Challenged

The HC stayed a summons issued by CGST Superintendent after determining that summoning the petitioner following completion of inquiry, show cause notice, and original order was impermissible. The court also examined a challenge to a 2017 circular assigning powers under the CGST Act, with the petitioner arguing that CBEC lacked authority to delegate such powers. Relying on recent SC precedent, the court found prima facie merit in the petitioner's arguments and granted interim relief pending further proceedings.

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Issues:
Challenge to summon issued by Superintendent of CGST and challenge to circular assigning powers under CGST Act.

Analysis:
The petitioner challenged a summon dated 28.12.2021 issued by the Superintendent of CGST and a circular dated 05.07.2017 assigning powers under various provisions of the CGST Act. The petitioner contended that the Central Board of Excise and Customs (CBEC) lacked the authority to assign or delegate powers as done in the circular. Citing a recent Supreme Court decision, the petitioner argued that the summons were issued after the completion of the search process, issuance of show cause notice, and passing of the original order, making it impermissible for the respondent to summon the petitioner.

The Court issued notice returnable on 23.03.2022, with the counsel for the respondents waiving notice. The Court observed prima facie that issuing summons after the completion of the full inquiry, resulting in the issuance of show cause notice and passing of the original order, was not permissible. Consequently, the Court stayed the impugned summons pending further proceedings.

This judgment highlights the importance of procedural compliance and the limitations on the authority to issue summons under the CGST Act. It emphasizes the need for proper adherence to legal requirements and the prohibition against summoning parties after the completion of relevant processes. The decision also underscores the significance of recent judicial precedents in interpreting and applying legal provisions in similar cases.

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