Gujarat HC: GST Officers Can’t Be Cross-Examined Over Summons or Arrest Memos

The Gujarat HC order states that GST officers administering summons or detention memos do not require cross-checking by the assessee.

Justices Bhargav D. Karia and Pranav Trivedi stated that the taxpayer wished to cross-examine individuals from the department who had either issued the summons or the arrest memo. These persons do not need to be cross-examined by the taxpayer.

The taxpayer is a proprietor of M/s. KSEG India International was accused of taking input tax credit based on invoices without receiving the goods from various fake firms.

The intimation in Form GST-DRC-01A under Rule 142(1A) of the Central Goods and Services Tax Rules, 2017, has been issued by the department, though no response was obtained till the issuance of the show-cause notice.

Confirming the demand of Rs 14.52 crores along with interest and penalty, an order was issued.

Taxpayer, the order is passed without furnishing a chance of hearing before the taxpayer or his advocate and without furnishing any opportunity of cross-examination.

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The petitioner further stated that the Authority never informed them that cross-examination of the Department Officers would not be allowed, even though these Officers issued the summons and are named in the relied-upon documents. The petitioner argued that cross-examining the Department Officers was essential to properly document how the inquiry was conducted by the Department.

In response to the argument made by the taxpayer regarding the lack of opportunity to cross-examine the individuals named in the application dated October 4, 2024, the bench noted that out of the five individuals mentioned, four are Department officials who either issued summons or arrest memos.

As a result, the bench concluded that these officials do not need to be cross-examined by the taxpayer, and thus, respondent No. 2 was correct in not granting the opportunity for cross-examination of these Departmental Officers to the taxpayer.

To challenge the order, the taxpayer has an alternative efficacious remedy by preferring an Appeal under section 107 of the GST Act, the bench cited.

The bench for the above has dismissed the petition with liberty for the taxpayer to file a statutory appeal as given u/s 107 of the GST Act.