The Patna High Court dismissed a writ petition filed by a construction company challenging multiple summons and notices issued by GST authorities. The Court also imposed a cost of ₹25,000, holding that the summons were legally valid and that interference at the investigation stage would hinder the ongoing inquiry.
The bench of Justice Rajeev Ranjan Prasad and Justice Smt. Soni Shrivastava has stated that the summons was a component of an ongoing investigation into alleged bogus ITC claims. The authorities acted within their legal powers. Judicial interference at this early stage could disrupt the investigation process.
The applicant approached the Court asking cancelling of multiple summons issued via distinct GST authorities, alleging breach of section 6(2) of the Central and Bihar Goods and Services Tax Act, 2017, and relevant CBIC circulars. The applicant asked for protection against coercive recovery measures in the pendency of proceedings.
Under the GST regime, the applicant, a registered company, was furnished with various summons and notices over a duration concerning its supply transactions and input tax credit claims. It claimed that repeated issuance of summons via multiple authorities on the same subject matter was not accurate and contrary to regulatory norms.
The dispute has emerged in the context of tax proceedings initiated u/s 74 of the CGST Act, concerning alleged excess availment of ITC based on discrepancies between GSTR-3B and GSTR-2B returns. From April 2023 to March 2024, the tax demand was calculated at approximately Rs 34.77 lakh. Including interest and penalties, the total amount exceeded Rs 71.21 lakh.
Also, for the forthcoming period 2024-25, a tax obligation of Rs 87.08 lakh was determined, escalating to ₹1.75 crore, including interest and penalty. SCNs were also issued by authorities, and it passed orders confirming the demands u/s 74.
Alongside the assessment proceedings, the Directorate General of GST Intelligence (DGGI) launched an investigation into suspected fraudulent claims of Input Tax Credit (ITC). U/s 70 of the CGST Act, summons were issued requiring the applicant’s director to appear and provide documents, including purchase ledgers, invoices, and bank records, dating back to July 2017.
These summons are contested by the applicant, claiming that multiple authorities were simultaneously exercising jurisdiction, thereby breaching statutory safeguards.
Post analysing the summons, the HC held that they were issued via competent officers u/s 70 of the CGST Act, which empowers authorities to summon any person for proof or document production in the course of an inquiry, which is equal to the powers vested in a civil court.
The bench clearly stated that there was no reason to interfere with the summons, as doing so would disrupt the ongoing inquiry.
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The court, after not finding any merit in the claims of the applicants, dismissed the writ petition and levied Rs 25,000 on the applicant, asking that the amount be paid to the Patna High Court Legal Services Committee within 1 month.
| Case Title | Morlatis Engineering and Construction Private Limited vs. Union of India |
| Case No. | No.809 of 2026 |
| For Petitioner | Mr. Sadashiv Tiwari |
| For Respondent | Mr. Vikas Kumar, Mr. Sriram Krishna, Mr. Prabhat Kumar Singh, and Mr. Amarjeet |
| Patna High Court | Read Order |
