Tax / Indirect Tax : Procedure for Anomalies in Respect of ITC and Allegations of Fake Invoices

Tax / Indirect Tax : Procedure for Anomalies in Respect of ITC and Allegations of Fake Invoices

In the case of Sudhir Kumar Aggarwal v. DG GST Intelligence [2019] GCtR 792 (Delhi), Department relied on S.70 of CGST Act, 2017 where allegations of fake invoices were made against an individual. It was held that "no inquiry/ investigating officer has a right to use any method which is not approved by law to extract information from a witness/ suspect during examination and in case it is so done, no one can be allowed to break the law with impunity and has to face the consequences of his action."

It can be seen what exactly S.70 of CGST Act, 2017 deals with. While S.69 deals with power of arrest, S.70 deals with issuance of summons. S.70 (1) of CGST Act permits proper officer to issue summons to such persons whose presence proper officer considers necessary. It is clear that S.69 has different effect than S.70. S.69 has to be put in the context of S.132 of the Act. In context of S.69, some special provisions exists when facts are relatable to S.132 (5) of the CGST Act, 2017. S.132 (5) makes certain offences under CGST Act, 2017 non-bailable and cognizable. The bar created under S.132 (6) is only with respect to prosecution.