DGGI Has Jurisdiction to Issue SCN Under Section 74 | HC Directed to Respond to SCN

Case Details: AKA Logistics (P.) Ltd. v. Union of India - [2024] 168 taxmann.com 461 (Jharkhand)

Judiciary and Counsel Details

• Sujit Narayan Prasad & Arun Kumar Rai, JJ.
• Kartik Kurmy, Nitin Kr. Pasari & Ms Sidhi Jalan, Advs. for the Petitioner.
• P.A.S. Pati, Amit Kumar, Sr. Standing Counsels, Anurag Vijay, Jr. Standing Counsel, Om Prakash, Srijan & Mrs Debolina Sen Hirani, Advs. for the Respondent.

Facts of the Case

In the instant case, the petitioner challenged the jurisdiction of the Directorate General of Goods and Services Tax Intelligence (DGGI) to issue demand-cum-show cause notices u/s 74 of the CGST Act. The petitioner contended that these officers were not “Proper Officers” under the GST Act and lacked the authority to issue such notices, as Section 74 requires a Proper Officer to initiate proceedings for tax not paid or short paid.

High Court Held

The High Court observed that Notification No. 14/2017 – Central Tax dated 1st July 2017, authorized officers of the DGGI to exercise the powers of central tax officers, including the issuance of show cause notices u/s 74 of the CGST Act.

Therefore, the ground which has been taken by the petitioner to quash the show-cause notices due to want of jurisdiction was having no substance and accordingly, the DGGI has jurisdiction to issue show-cause notices. Thus, the instant writ petition was to be disposed of directing the petitioner to respond to the said show-cause notice for its consideration by the authority concerned.

List of Cases Reviewed

• Union of India v. VICCO Laboratories, (2007) 13 SCC 270 (Para 52)
• State of U.P. v. Arezzo Developers (P) Ltd., (2016) 12 SCC 530 (para 53) followed.
• Commissioner of Customs v. Sayed Ali and Anr., (2011) 3 SCC 537 (Para 49) distinguished.

List of Cases Referred to

• Commissioner of Customs v. Sayed Ali and Anr. (2011) 3 SCC 537 (para 37)
• Union of India v. VICCO Laboratories (2007) 13 SCC 270 (para 52)
• State of U.P. v. Arezzo Developers (P) Ltd. (2016) 12 SCC 530 (para 53).