GST Summons Challenge Dismissed as Investigation Transfer Found Procedurally Correct and No Further Action Warranted

HC allowed the petition challenging GST summons. After reviewing the transfer of investigation from State GST authorities to DGGI Meerut Zonal Unit, the court found no further action required. The Directorate General of GST Intelligence was impleaded as a respondent, and the petition was disposed of without additional directives.

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Issues involved:
1. Impleading Directorate General of GST Intelligence, Ghaziabad Regional Unit, Ghaziabad as respondent No.3.
2. Assailing the summons issued by respondent No.1 under Section 70 of the Central Goods & Services Tax Act, 2017 (CGST Act) on the ground of ongoing investigation by State GST authorities.

Issue 1: Impleading Directorate General of GST Intelligence, Ghaziabad Regional Unit, Ghaziabad as respondent No.3
In the application, prayer was made for impleading Directorate General of GST Intelligence, Ghaziabad Regional Unit, Ghaziabad as respondent No.3. Respondent No.3 filed a reply along with Annexure R-3/1. The counsel for the opposite party had no objection to allowing the application. Consequently, Directorate General of GST Intelligence, Ghaziabad Regional Unit, Ghaziabad was impleaded as respondent No.3.

Issue 2: Assailing the summons under Section 70 of the CGST Act
The petitioner challenged the summons dated 12.07.2022, issued by respondent No.1 under Section 70 of the CGST Act. The primary contention was that the summons was barred by Section 6(2)(b) of the CGST Act due to an ongoing investigation by State GST authorities. Respondent No.1 submitted a reply along with a letter dated 02.02.2023, Annexure R1/1. The letter indicated that the investigation against M/s Sanraj Metal Pvt. Ltd. was to be transferred to the Directorate General of Goods and Services Tax Intelligence, Meerut Zonal Unit. Subsequently, the investigation was transferred to DGGI, Meerut Zonal Unit as per the letters dated 04.01.2023 and 02.02.2023. Given that the investigation had already been transferred to DGGI, Meerut Zonal Unit, no further direction was deemed necessary in this case. The petition was disposed of accordingly.

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