Issuance of summons is the last resort and not to be issued in casual manner: Bombay HC

Case Details: FSM Education (P.) Ltd. v. Union of India - [2022] 134 taxmann.com 280 (Bombay)

Judiciary and Counsel Details

• • R.D. Dhanuka and S.M. Modak, JJ.
  • Jamshed Master and Ms. Natasha K. Bhot for the Petitioner. 
  • Jitendra B. Mishra, Satyaprakash Sharma and Ms. Sangeeta Yadav for the Respondent.

Facts of the Case

The petitioner was a school of music engaged in the business of recreational activities such as teaching music to school children and other enthusiasts either at its teaching centre or at a school. It received a notice requesting to submit certain documents within a period of four days from the date of receipt of the notice and it submitted the required documents. Thereafter, summons was issued to the petitioner without any details of the inquiry. It filed petition to direct the department to conduct an inquiry without initiating summons and interrogation unless found extremely necessary.

High Court Held

The Honorable High Court observed that the petitioner has furnished all the documents called upon by the department. Moreover, there were no allegations made by the department alleging non-cooperation on the part of the petitioner. It is also observed that the issuance of summons is a last resort and would not be issued in a casual manner. The summons cannot be issued to coerce and pressurize the petitioner or its director. The department was therefore directed to inform the petitioner the list of further documents required to be produced by the petitioner and other requisite queries to which, they seek clarifications from the petitioner. Moreover, if any summons is issued, the summons shall indicate the purpose of issuing summons to the petitioner with clear seven days notice before fixing the date for recording the statement.