CBIC asks officers to refrain from unduly summoning CMD/CEOs

“The arrest should not be made in routine and mechanical manner,” it said. Since arrest impinges on the personal liberty of an individual, such a measure should be based on credible material, it added in an official order late Wednesday.

CBIC asks officers to refrain from unduly summoning CMD/CEOs
The investigation authority has issued guidelines to field officers on issuing summons and provision of arrest and bail under the GST law.

The GST investigation authority óf the Central Board of Indirect Taxes and Customs (CBIC) has asked field offices not to exercise the power to arrest in a mechanical manner and also refrain from routinely summoning senior management officials like chairman and managing directors (CMDs) or chief executives of companies.

The investigation authority has issued guidelines to field officers on issuing summons and provision of arrest and bail under the GST law.

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“The arrest should not be made in routine and mechanical manner,” it said. Since arrest impinges on the personal liberty of an individual, such a measure should be based on credible material, it added in an official order late Wednesday.

“The circular meets industry expectations by clarifying that summons should not be issued to demand statutory documents already available in the online GST portal, calling of senior officials such as MD, CEO, and CFO in exceptional circumstances, non-issuance of repeated summon without ensuring service of summons.

The circular brings certainty on important matters related to the summons,” said Saurabh Agarwal, Tax Partner, EY India.

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