Page 99 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : KARNATAKA CO-OPERATIVE MILK PRODUCERS FEDERATION LTD. 609
98(2) The Authority may, after examining the application and the records
called for and after hearing the applicant or his authorised representative
and the concerned officer or his authorised representative, by order, either
admit or reject the application :
Provided that the Authority shall not admit the application where the ques-
tion raised in the application is already pending or decided in any proceed-
ings in the case of an applicant under any of the provisions of this Act.
Provided further that no application shall be rejected under this sub-section
unless an opportunity of hearing has been given to the applicant :
Provided also that where the application is rejected, the reasons for such re-
jection shall be specified in the order.
12. Sec. 98(2) provides that the application shall not be admitted where
the question raised is already pending under any of the provisions of this Act. It
is clear from the record submitted by the Appellant Department that proceedings
were pending against KCMPFL before the DGGI and the issue taken up by the
DGGI in the proceedings related to the classification of the Flavoured Milk -
whether under Chapter Heading 2202 99 30 or under 0402 99 90.
13. The DGGI is the apex intelligence agency under Ministry of Fi-
nance, Department of Revenue which has been invested with powers to detect
and investigate cases of GST evasion throughout the territory of India under the
Central GST Act, 2017, irrespective of the fact that whether the taxpayer is under
the control and administration of Centre or State authorities. We find from the
records that the DGGI, Bangalore had issued a letter bearing F. No. V/1/FLAV
MILK/KMF/2018-19 BZU, dated 7th January, 2019 to KCMPFL calling for cer-
tain details in connection with the enquiry undertaken by them on the supply of
beverages containing flavoured milk. Thereafter a summons under Section 70 of
the CGST Act, 2017 was issued on 9th January, 2019 to Shri Ramesh Konnur, Di-
rector (Finance), KCMPFL directing him to appear before the Senior Intelligence
Officer on 18 Jan., 2019 to tender evidence and to produce certain documents
listed therein. This was followed by issue of Incident Report No. 133/2018-19-ST
on 17th January, 2019 wherein it was stated that intelligence was gathered that
KCMPFL were mis-classifying flavoured milk under Chapter Heading 0402 and
discharging GST at 5% instead of classifying the same under Chapter Heading
2202 99 30 which attracts 12% GST. The incident report states that investigation
was initiated by calling for records under summon procedure and the investiga-
tion is under process.
14. In their counter, the respondent has stated that the application for
advance ruling was filed by them on 20th March, 2019 at which time there was
no investigation by any agency of the Department. They submitted that the
summons was issued only on 1st April, 2019 whereas the letters dated 7th Jan.,
2019 and 9th Jan., 2019 were merely communications calling for documents and
cannot be treated as summons in connection with any investigation. We are una-
ble to appreciate this argument by KCMPFL. The summons dated 9th Jan., 2019
issued by the Senior Intelligence Officer, DGGI, Bangalore is in terms of Section
70 of the CGST Act which empowers an officer to call a person to give evidence
in respect of an enquiry being conducted. The summons dated 9th Jan., 2019 has
also informed the person being summoned about the legal consequences of not
honouring the summons and to specifically produce documents relating to the
sale of flavoured milk during the period July, 2017 to November, 2018.

GST LAW TIMES  26th March 2020  195