HC holds summons by CGST legal

Hyderabad: A Division bench of the Telangana High Court comprising Justice V Ramasubramanian and Justice P Keshav Rao on Thursday dismissed a slew of petitions filed by the Sujana Group challenging the validity of summons issued by GST Commissioners pertaining to alleged shell companies floated by Sujana Group.

The bench observed that the CGST is the competent authority and they did not exceed their authority and therefore the petitions filed against the issuance of summons held no water.

The Union government submitted to the court that the petitioners had indulged in several offences that fell under the ambit of the CGST Act and therefore for investigation and other related action CGST has a legal right to summon.

It may be recalled that, the court in earlier instance has directed the authorities not to detain the directors provided they cooperate with the CGST for investigation.

After hearing all parties to the petition at length, the bench did not find merit in the arguments put forth by the petitioners.

The bench further averred that it was not illegal if CGST authorities wanted to detain any individuals pertaining to the case