Allahabad HC: Order Over INR 10 Lakh Can’t be Passed by the GST & CE Superintendent

The order by the GST and Central Excise Superintendent for lack of jurisdiction is been quashed by the Lucknow bench of Allahabad High Court.

The bench of Justice Alok Mathur sees that as per the circular, February 9, 2018 issued by the Government of India, Ministry of Finance, and Department of Revenue, the power of the Superintendent, Central Goods and Service Tax, and Central Excise is restricted to the case of not more than Rs. 10,00,000, and in the present case, the amount concerned exceeds than Rs. 16,00,000, and therefore, the order passed by it is without jurisdiction.

Under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act), the applicant has contested the passed order which was passed by the Superintendent of Central Goods and Services Tax and Central Excise.

The applicant argued that the order that the Superintendent, Central Goods and Services Tax, and Central Excise passed does not have jurisdiction to pass under the circular 9.2.2018 issued by the Government of India, Ministry of Finance, and Department of Revenue.

The petitioner, the Superintendent, Central Goods and Service Tax, and Central Excise did not have jurisdiction to pass an order. On February 9, 2018, the respondent’s department issued an order assigning jurisdiction to diverse heads for the maximum amount of central tax not paid, short paid, incorrectly refunded, or input tax credit of central tax inaccurately claimed or utilized.

Argued by the department the order is not accurate to the extent that it was not passed via the proper officer under Circular No. 31/05/2018-GST on February 9, 2018, as the monetary limit of the ITC erroneously claimed or used by the central tax is Rs. 10 lakhs and the state tax is Rs. 10 lakhs, totalling to Rs. twenty lakhs for the issuance of show cause notices and the passing of orders under Sections 73 and 74 of the CGST Act.

The order is without jurisdiction and is set aside as per that, the court ruled.

The respondent department is been provided with the liberty by the court to proceed afresh following the law.