Commissionerate Issuing SCN to Assessee With Highest Demand Holds Jurisdiction to Adjudicate All Connected SCNs | Delhi HC

Case Details: Aasanvish Technology (P.) Ltd. v. Director General of GST Intelligence - [2024] 158 taxmann.com 50 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Rajat Mittal & Suprateek Neogi for the Appellant.
  • Aditya Singla, Ms Charu Sharma & Neeraj Aggarwal for the Respondent.

Facts of the Case

The petitioner was engaged in the business of providing online gaming services. The department issued show cause notice (SCN) proposing to demand tax and penalty. It filed writ petition to challenge the SCN and contended that the Additional Commissioner of Central Tax, Thane would have no jurisdiction to adjudicate the said notice.

High Court Held

The Honorable High Court noted that in the instant case, multiple SCNs were issued in connected matters. The CBIC has issued Circular No. 31/05/2018-GST to clarify that the matter for adjudication can be placed before an officer, who exercises jurisdiction in respect of the noticees (where multiple notices have been issued), in whose case the maximum demand has been raised.

Therefore, the Court held that the contention of the petitioner that Additional/Joint Commissioner of Central Tax, Thane would have no jurisdiction was unmerited since highest demand was raised in impugned SCN. The Court also directed the concerned officer to consider all contentions and defences raised by the petitioner and he would be required to pass a speaking order.