Case Note & Summary
The State of Gujarat appealed against an order of the High Court that had quashed a summons issued to the respondents under Section 145 of the Central Excise Act, 1944, as made applicable to service tax by Section 83 of the Finance Act, 1994 and Section 70 of the Central Goods and Services Tax Act, 2017. The summons dated 31.10.2018 called upon the respondents to remain present for interrogation in connection with an inquiry. The respondents' counsel informed the Supreme Court that he had not been in touch with his clients for almost six months and could not assist. The Court heard the counsel for the State and, upon perusing the record, found that the summons was validly issued. The Court allowed the appeal, set aside the High Court's order, and directed the respondents to appear before the investigating officer and cooperate with the investigation.
Headnote
A) Service Tax - Summons - Section 145 of Central Excise Act, 1944 read with Section 83 of Finance Act, 1994 and Section 70 of CGST Act, 2017 - Validity of Summons - The court considered whether a summons issued under the said provisions for interrogation in a service tax inquiry was valid and enforceable. The court held that the summons was valid and the respondents were required to comply. (Paras 5-6)
B) Criminal Procedure - Non-cooperation with Investigation - Duty to Appear - The court noted that the respondents had not appeared despite a valid summons and that their counsel was unable to assist due to lack of contact. The court directed the respondents to appear before the investigating officer and cooperate. (Paras 2-6)
Issue of Consideration
Whether the respondents were obliged to comply with a summons issued under Section 145 of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 and Section 70 of the CGST Act, 2017 for interrogation in a service tax inquiry.
Final Decision
Appeal allowed. High Court order set aside. Respondents directed to appear before the investigating officer and cooperate with the investigation.
Law Points
- Summons under Section 145 of Central Excise Act
- 1944 as applicable to service tax via Section 83 of Finance Act
- 1994 and Section 70 of CGST Act
- 2017
- Duty to cooperate with investigation
- Non-appearance despite valid summons
Case Details
Criminal Appeal Nos. of 2023 (Arising out of SLP(Crl.) No. 4212-4213 of 2019)
Mr. Kanu Agrawal (for State of Gujarat)
Choodamani Parmeshwaran Iyer & Anr. etc.
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Nature of Litigation
Criminal appeal against High Court order quashing summons for interrogation in service tax inquiry.
Remedy Sought
State of Gujarat sought setting aside of High Court order and direction to respondents to comply with summons.
Filing Reason
Respondents failed to appear pursuant to summons issued under Section 145 of Central Excise Act, 1944 read with Section 83 of Finance Act, 1994 and Section 70 of CGST Act, 2017.
Previous Decisions
High Court quashed the summons; the State appealed to Supreme Court.
Issues
Whether the summons issued under Section 145 of Central Excise Act, 1944 read with Section 83 of Finance Act, 1994 and Section 70 of CGST Act, 2017 was valid and enforceable.
Submissions/Arguments
Respondents' counsel submitted inability to assist as clients were not in touch for six months.
State's counsel argued for validity of summons and need for respondents to cooperate.
Ratio Decidendi
A summons issued under Section 145 of the Central Excise Act, 1944, as made applicable to service tax by Section 83 of the Finance Act, 1994 and Section 70 of the CGST Act, 2017, is valid and enforceable, and the recipient is duty-bound to comply and cooperate with the investigation.
Judgment Excerpts
It appears from the materials on record that a summons came to be issued dated 31.10.2018 to the respondents under Section 145 of the Central Excise Act, 1944... calling upon them to remain present for the purpose of interrogation in connection with an inquiry.
In view of the aforesaid, we had no benefit of any assistance from the learned counsel appearing for the private respondents.
Procedural History
The High Court quashed a summons issued to the respondents under Section 145 of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 and Section 70 of the CGST Act, 2017. The State of Gujarat appealed to the Supreme Court by way of Special Leave Petitions (Crl.) No. 4212-4213 of 2019, which were converted into Criminal Appeals. The Supreme Court heard the matter and passed the present order.
Acts & Sections
- Central Excise Act, 1944: 145
- Finance Act, 1994: 83
- Central Goods and Services Tax Act, 2017: 70
