Page 51 - GSTL_27th August 2020_Vol 39_Part 4

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GST evasion : CEOs of large companies/PSUs not to be
issued summons at first instance
The Directorate General of GST Intelligence (DGGI) has issued guide-
lines, which seek to soften the impact of investigations and ensure that no
excesses are committed that include minimal personal summons, no repeated
summons and generally not issuing summons to CEOs and CFOs of large com-
panies in the first instance for GST evasion.
In a circular issued last week, the Directorate said, “As an enforcement
agency, it is imperative for the DGGI to maintain a balance wherein investiga-
tions should proceed strictly, as per law, while simultaneously ensuring that no
excesses are meted out to the taxpayers and their sensibilities are respected.”
The officers have been asked to ensure that a summon for personal ap-
pearance is issued only when specifically required. This would imply that the
personal presence of an individual is minimised.
In addition, summons should not be issued repeatedly and as far as
practicable, a comprehensive statement should be recorded in the first instance
itself. The implication of this measure is that any harassment is avoided with re-
peated summons, personal appearances and whatever needs to be recorded is
done at the first instance.
The DGGI has also prescribed that summons for calling for information
should also not be issued in piecemeal manner and as far as possible all relevant
information should be gathered in one go.
In an important intervention, the DGGI prescribed, “Senior management
officials such as CEO, CFO, General Manager of a large company or a PSU
should not generally be issued summons at the first instance unless the evidence
suggests otherwise.”
The DGGI further said that while conducting a search, the officers
should be sensitive towards the assessee or party. Special attention should be
given to elderly, women and children present in the premises under search.
“Children should be allowed to go to school, after examining their bags.
A woman occupying any premises, to be searched, has the right to withdraw
before the search party enters, if according to the Customs she does not appear in
public. If a person in the premises is not well, a medical practitioner may be
called. Religious sentiments of the person under search should not hurt in any
way,” the DGGI said.
[Source : Millennium Post, New Delhi, dated 18-8-2020]
GST LAW TIMES  27th August 2020  51