State Tax Authorities Not Mandated To Issue DIN With Orders Or Summons: Gujarat High Court

The Division Bench of Justices Bhargav D. Karia andP.M. Ravalobserved that “there is no mechanism of issuance of DIN on any of the communication, notice, summons, orders issued by the State Tax Authorities. In such circumstances, the contention raised on behalf of the assessee, that the DIN is not mentioned in any of the summons and the previously attachment order being without any basis, is rejected.”

In this case, the assessee/petitioner No.1 is a Private Limited Company engaged in the business of dealing in Building Materials, Steel etc.

However, before the search proceedings were concluded, the department-initiated proceedings to block the ITC of the assessee.

On the same day, summons was issued to the assessee to produce Books of Accounts and give Statement and the bank account of the assessee was provisionally attached by the department with a subjective satisfaction note in Form GST DRC 22.

The assessee has challenged the actions of the department for authorizing search and seizure proceedings u/s. 67(1), blocking of ITC and for passing of order of provisional attachment.

The assessee submitted that that the State authorities have not issued the summons and the impugned orders with DIN. It was submitted that as per the Circular No. 37 of 2019 issued by the Central Board of Indirect Taxes and Customs (Investigation-Custom) dated 05.11.2019, it is mandatory for the respondents to mention the DIN in all the summons, arrest memo, inspection notices and letters issued in the course of any enquiry except in exigent circumstances as stated in Para 3 of the said Circular, failing which, such summon, notice etc. has to be treated as invalidated and deemed to have been never issued.

Regarding the contention raised on behalf of the assessee for not mentioning the DIN the bench noted that “the Circular relied upon by the assessee is issued by the Central Board of Indirect Taxes and Customs addressed to all Principal Chief Commissioner of Customs, Principal Director General, Chief Commissioner of Customs, Director General, Principal Commissioner of Customs, Principal Additional Director General, Commissioner of Customs, Additional Director General and all Joint Secretaries and Commissioner, CBIC. The Circular is not addressed to any of the Commissioners of any of the State Tax who is an authorized person. Therefore, the application of the circular is rightly stated to have been not applicable to the State Tax Officer under the provisions of the GGST Act.”

As it is evident from the legal legislative history that both the Acts i.e. Central Goods Service Tax Act and State Goods Service Tax Act are operating by separate Acts, Notification, Circulars issued by the Central Government and the State Government separately, observed the bench.

The bench further stated that as and when any notification issued by the Central Government or Central Board of Indirect Taxes, similar notification is issued by the State Authorities. However, in the facts of the case, it is not brought to the notice that any such similar circular like Circular Number 37/2019 is issued by the State Tax Authority.

The bench opined that Circular No. 37 of 2019 cannot be said to be applicable to the communications including the summons, notices or any order issued by the State Tax authority.

In view of the above, the bench dismissed the petition.

Case Title: M/s NRM Metals (India) Private Limited & Anr. v. Union of India & Ors.

Case Number: R/SPECIAL CIVIL APPLICATION NO. 4910 of 2025

Counsel for Petitioner/ Assessee: Abhishek Kumar C Malvi

Counsel for Respondent/ Department: Param Shah

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