Fox Mandal & Co approached the Supreme Court of India challenging a Rs 3.9-crore service tax demand from the pre-GST regime; a bench of PS Narasimha and Alok Aradhe granted two weeks to file missing documents.
The Bombay High Court clarified that summons under Section 70 are meant for inquiry and statement recording, not detention, resolving long-standing confusion in GST investigations. It further ruled that no seven-day prior notice is required before issuing such summons.
The Supreme Court reiterated that taxation statutes must be interpreted strictly and courts must follow their plain meaning when language is clear and unambiguous. Justices J. B. Pardiwala and K. V. Vishwanathan warned against adding words to laws under assumed legislative intent.
