The Supreme Court has dismissed the appeal of M/s Armour Security (India) Ltd., challenging Delhi High Court’s order upholding summons issued under Section 70 of the CGST Act, 2017.
The company, engaged in providing security services, had earlier received a show-cause notice from the State GST authority over alleged wrongful input tax credit (ITC) claims worth ₹1.24 crore for April 2020–March 2021. Later, the Central GST (Delhi East Commissionerate) conducted a search, seized documents, and issued summons to company directors. Armour Security argued that since the State GST authority had already initiated proceedings on the same issue, the Central GST lacked jurisdiction under Section 6(2)(b) of the CGST Act.
Read also: Supreme Court Examines Trademark Dispute Between Pernod Ricard and 'London Pride' Whisky
The Delhi High Court rejected this view, holding that a summons is part of an inquiry, not "initiation of proceedings" under Section 6(2)(b), which applies to assessment, demand, and penalty actions. The Supreme Court agreed, noting:
"Issuance of summons under Section 70 is a step to gather information and does not amount to initiation of proceedings under Section 6(2)(b)."
Read also: Supreme Court Cancels Bail of Accused in Karnataka Murder Case, Citing Serious Lapses
The Court clarified that Section 6 aims to prevent parallel assessment proceedings, not bar separate investigations. It upheld the High Court’s ruling, allowing the Central GST authority to continue its inquiry.
Case Title: M/s Armour Security (India) Ltd. vs Commissioner, CGST, Delhi East Commissionerate & Anr.
Case Number: Special Leave Petition (C) No. 6092 of 2025
Judgment Date: 2025 (Reported as 2025 INSC 982)
