2026 (2) TMI 1070 - HC - GST

Right to Record Statements: video recording and limited advocate presence permitted during summons recordings, subject to non-interference.

Summons proceedings under the GST framework permit limited procedural safeguards: the person whose statement is recorded may have the recording video ... Videography of statement recordings - right to be accompanied by an advocate during summons u/s 70 of the CGST Act - cooperation in summons inquiry - humanitarian consideration for serious illness during departmental proceedings - limited, non-precedential orders in exceptional facts - HELD THAT:- The case of the Petitioners is that all such transactions were genuine and supported by valid tax invoices, which, according to the Petitioner were duly reflected in the GSTR-2B returns. It is also Petitioner’s case that payments in respect of the said transactions were made through proper banking channels. The Petitioners contend that the GST registrations of the said suppliers came to be cancelled by the Department and that the suppliers have filed statutory appeals before the jurisdictional GST authorities, which are stated to be pending consideration. The Petitioners contend that the Petitioners are ready and willing to cooperate with the inquiry as initiated, subject matter of the summons in question. It is further contended that Petitioner No. 2 is suffering from cancer which would therefore require appropriate humanitarian consideration at the hands of the Department. We are of the opinion that the request as made by the Petitioners could have been appropriately considered by the concerned officials. Petitioner No. 2 is stated to be undergoing treatment for cancer. The Petitioner, at his own cost, seeks that the proceedings be videographed. It is also brought to our notice that in Suumaya Industries Ltd. [2022 (10) TMI 371 - BOMBAY HIGH COURT] a Co-ordinate Bench of this Court had accepted a similar arrangement. Considering the nature of the inquiry, which is pursuant to summons issued under Section 70 of the CGST Act, 2017, and bearing in mind that the Petitioner No. 2 expresses willingness to cooperate with the investigation, we are inclined to accept the limited request as made on behalf of the Petitioners. Petition deserves to be disposed of in terms similar to the directions issued in Sumaya Industries Ltd. (supra). Issues: Whether, in proceedings pursuant to a summons under Section 70 of the Central Goods and Services Tax Act, 2017, the person whose statement is being recorded may have the statement video recorded at the petitioner's cost and may be accompanied by an advocate who may sit at a visible but not audible distance without interfering with the recording.Analysis: The summons inquiry relates to input tax credit claimed and is conducted under Section 70 of the Central Goods and Services Tax Act, 2017. The petitioner has expressed willingness to cooperate with the inquiry and sought limited safeguards: (i) video recording of the statement at the petitioner's cost; and (ii) allowing an advocate to accompany the witness, to sit at a visible but not audible distance and not to interfere with or disturb the recording. The petitioners also relied on an order of a Co-ordinate Bench providing similar directions. Considering the nature of the inquiry, the stated willingness to cooperate, and the petitioner's medical condition requiring humanitarian consideration, granting these limited safeguards suitably balances investigative needs and the petitioner's rights.Conclusion: The petition is allowed to the limited extent that (i) the statement of the person summoned shall be video recorded at the cost of the petitioners; and (ii) an advocate may accompany the person during recording but shall not interfere, interrupt or disturb the recording and shall sit at a visible but not audible distance.