HC Orders Response to GST Summons by Empowered Officer for Evidence Collection

Case Details: Bankipore Club Ltd. v. Union of India - [2023] 150 taxmann.com 76 (Patna)

Judiciary and Counsel Details

• • Chakradhari Sharan Singh, ACJ. and Madhuresh Prasad, J.
  • Ajay Kumar Rastogi, Sr. Advocate, Alok Kumar Shahi and Mrs. Archana Sinha, Advocates for the Petitioner. 
  • Anshuman Singh, Sr. Standing Counsel for the Respondent.

Facts of the Case

The petitioner was a Members Club and engaged in providing its members privileges, advantages, conveniences accommodation of a club. The Superintendent issued summons to the petitioner to produce evidence, all books of accounts, bank statements and documents including statement showing details of payment received under different heads/services from July 1st, 2017 till date.

It filed writ petition to challenge the summons issued to it and raised plea of non-taxability of its services prior to January 1st, 2022 and summons could not have been issued asking to produce evidence/documents for period prior to said date.

High Court Held

The Honorable High Court noted that as per petitioner, services rendered by it were made taxable only with effect from January 1st, 2022 by virtue of insertion of Clause (aa) to section 7(1) of CGST, 2017. However, Section 70 empowers proper officer to summon any person whose attendance he considered necessary to give evidence or to produce documents in any enquiry in same manner as provided in case of a civil court under provisions of Code of Civil Procedure, 1908.

Therefore, it was held that the issuance of summons to assessee could not be faulted. However, it would be open to petitioner to take a plea while responding to such summons that it had no GST liability prior to the said date and same would be considered by concerned officer.