This Tax Alert summarizes a recent ruling[1] of the Gujarat High Court (HC). The issue relates to powers of officers of Directorate General of GST Intelligence (DGGI) to issue summons under Goods and Services Tax (GST).
The key observations of the HC are:
- Senior Intelligence Officer of DGGI was appointed as Central tax officer and vested with all the powers exercisable by Superintendent under Central Goods and Services Tax Act, 2017 (CGST Act) vide Notification dated 1 July 2017.
- Further, central tax officers were assigned powers of proper officer by the Central Board of Indirect taxes and Customs (CBIC) vide Circular dated 5 July 2017.
- Thus, DGGI officer is a proper officer and is entitled to issue summons under section 70 of CGST Act.
- There being no delegation of powers by Commissioner, the provisions of section 167 of CGST Act were not attracted and hence, there was no necessity to issue any notification.
- Parallel proceedings by Directorate of Revenue Intelligence (DRI) and DGGI can sustain as they relate to different matters.
Thus, the Court held that DGGI officer has the power to issue summons under GST.
Comments
- The ruling provides guidance in respect of the powers of officers of various Directorates under the GST law.
- While Circular no. 31/05/2018 - GST dated 9 February 2018 provides that DGGI officers can issue show case notice, the same needs to be analyzed in light of Supreme Court ruling in case of Canon India.
- It may be interesting to see the outcome of review petition filed against Supreme Court decision.
[1]. 2021-VIL-483-GUJ
