Facts of the Case

The Petitioner, P.V. Rao, serving as Chief Financial Officer of Think and Learn Pvt. Ltd. (BYJU’S), was summoned under Section 70 of the CGST Act in connection with an ongoing GST evasion investigation relating to alleged misclassification of taxable supplies as exempt goods.

During inspection proceedings conducted between 27–29 October 2020, his statement was partly recorded. However, citing ill health, including hypertension and related conditions, he sought deferment of further statement recording.

Subsequently, he was summoned to appear in Delhi. Due to health concerns and the prevailing COVID-19 pandemic situation, the Petitioner requested permission to tender his statement through video conferencing instead of physical appearance.

The authorities rejected this request, leading the Petitioner to approach the Delhi High Court seeking a writ of mandamus. 

Issues Involved

  1. Whether a person summoned under Section 70 of the CGST Act can insist on recording of statement through video conferencing.
  2. Whether health concerns and COVID-19 risk justify exemption from physical appearance before investigating authorities.
  3. Whether courts can interfere in investigation procedures at the stage of evidence recording.

Petitioner’s Arguments

  • The Petitioner belonged to a vulnerable age group with co-morbidities such as hypertension, diabetes, and high cholesterol, posing a significant COVID-19 risk.
  • Travel from Bengaluru to Delhi would expose him to serious health risks.
  • Video conferencing is widely accepted by courts and quasi-judicial bodies during the pandemic.
  • Reliance was placed on:
    • Judicial precedents permitting recording of evidence via video conferencing
    • Administrative circulars discouraging casual summoning of senior management officials
  • It was argued that physical presence was not indispensable and virtual appearance would suffice.

Respondent’s Arguments

  • The Petitioner was non-cooperative and had deliberately avoided recording his statement during inspection proceedings.
  • Investigation was at a crucial stage involving sensitive and incriminating documents requiring detailed clarification.
  • Physical presence was necessary to ensure effective interrogation and prevent external influence during testimony.
  • Video conferencing could compromise the integrity of the investigation.

Court’s Findings / Order

  • The Court observed that the Petitioner’s medical documents did not establish any serious condition preventing travel.
  • It was acknowledged that the Petitioner was capable of travelling; his concern was only potential COVID-19 exposure.
  • The Court held that:
    • Mere apprehension of contracting COVID-19 is not sufficient ground to avoid compliance with summons.
    • Investigation proceedings stand on a different footing from court trials; thus, video conferencing precedents in trials are not directly applicable.
    • Judicial interference in ongoing investigations must be exercised with caution.

Final Order:

  • The writ petition was dismissed.
  • Authorities were directed to follow all safety protocols and complete the statement recording expeditiously. 

Important Clarifications by the Court

  • Video conferencing is not an absolute right in investigation proceedings.
  • COVID-19 risk alone does not override statutory obligations under summons.
  • Investigating authorities have discretion regarding the mode of recording statements.

Balance of convenience cannot favor the Petitioner when investigation integrity

Link to download the order -  https://delhihighcourt.nic.in/app/case_number_pdf/2020:DHC:3282-DB/SVN18112020CW89752020_213830.pdf

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