Professional Update

(Goods and Service Tax Case laws)

D.B. Civil Writ 5071/2024 (Jharkhand High Court)

AKA Logistics Private Limited.

vs

Union of India.

Ratio Decidendi

The Jharkhand High court held that notice u/s 74 of the CGST act issued under the signature of Additional director, Directorate General of Goods and Services Tax Intelligence, is valid. The proper officer is within the definition and powers of Section 5 of the CGST Act, as provided to the Board.

Facts

Petitioner challenges the notice passed u/s 74 of the CGST Act. The petitioner contends that notice is not issued by the jurisdictional proper officer and the same has been issued under the signature of Additional Director, Directorate General of Goods and Services Tax Intelligence, Regional Unit, Jamshedpur and Deputy Director, Directorate General of Goods and Services Tax Intelligence, Regional Unit, Jamshedpur who have got no authority to issue the said notices.

Issue

Whether the notice u/s 74 is being issued without having jurisdiction.

Held.

This Court is of the view that by virtue of the power exercised by the Board under Section 5 of the Act, 2017, a notification has been issued conferring power upon the Additional Director General, Goods and Services Tax Intelligence or Additional Director General, Goods and Services Tax or Additional Director General, Audit to act as a Commissioner and the Deputy/Assistant Director, Goods and Services Tax Intelligence or Deputy/Assistant Director, Goods and Services Tax or Deputy/Assistant Director, Audit to act as Deputy Commissioner/Assistant Commissioner and as such, it is incorrect on the part of the writ petitioners to take the ground that the Additional Director General, Goods and Services Tax Intelligence or Additional Director General, Goods and Services Tax or Additional Director General, Audit and the Deputy/Assistant Director, Goods and Services Tax Intelligence or Deputy/Assistant Director, Goods and Services Tax or Deputy/Assistant Director, Audit are having no power to initiate a proceeding under the Act, 2017.

Accordingly, this Court is of the view that the Additional Director General, Goods and Services Tax Intelligence or Additional Director General, Goods and Services Tax or Additional Director General, Audit and the Deputy/Assistant Director, Goods and Services Tax Intelligence or Deputy/Assistant Director, Goods and Services Tax or Deputy/Assistant Director, Audit are having jurisdiction to issue show cause notices.

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CA Manoj Garg

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