BSE-listed Suumaya Corp has dragged the Goods and Services Tax (GST) authorities to the Bombay High Court, arguing revenue officials don’t have the power to arrest corporate executives.
The company has challenged the constitutional validity of the tax department’s right to make arrests in cases where GST is exempt, as in the case of the agro products company.
Suumaya said that the tax department has no jurisdiction over issuing summonses either.
It claimed that at least six summonses had been issued to the company’s executives in the last few weeks, and the fear was that they would be arrested soon.
Suumaya told the court that some of the executives faced an “imminent threat of arrest” after a company’s customer defaulted on its GST liability.
The company said that this happened despite the fact that agro products are outside the scope of GST.