HC Placed Matter Before Division Bench to Decide Whether State Tax Authority Can Issue SCN Under CGST Act

Case Details: Pinnacle Vehicles and Services (P.) Ltd. v. Joint Commissioner, (Intelligence and Enforcement) - [2024] 169 taxmann.com 177 (Kerala)

Judiciary and Counsel Details

• Gopinath P., J.
• Ammu Charles, Adv. for the Petitioner. 
• J. Vishnu, Adv. for the Respondent.

Facts of the Case

The petitioner was a registered person under the CGST/SGST Acts, allocated to the jurisdiction of the Central Tax Authorities. The petitioner challenged the show cause notice issued by the State Tax Authority without jurisdiction and without any notification as contemplated by the provisions of Section 6(1) of the CGST Act.

High Court Held

The Kerala High Court noted that a reading of Section 6(1) of the CGST Act makes it clear that the officers appointed under the State Goods and Services Tax Act are authorised to be proper officers for the purposes of the Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify. Unaided by authority, a reading of the provision suggests that the officers appointed under the State Goods and Services Tax Act are proper officers for the purposes of the Central Goods and Services Tax Act. It is only when any restriction or condition has to be placed on the exercise of power by any officer appointed under the State Goods and Services Tax Act that a notification as contemplated by the provisions of Section 6(1) of the CGST Act has to be issued.

Since the issue raised in this writ petition will affect several proceedings, and taking note of the view expressed by the Madras High Court in case of Tvl. Vardhan Infrastructure [2024] 145 taxmann.com 1/66 GST 1 (Mad.), which is contrary to the prima facie view that the Court has taken, the Court was of the opinion that this issue requires an authoritative pronouncement by a Division Bench of this Court.

List of Cases Reviewed

• Tvl. Vardhan Infrastructure v. Special Secretary, Head of GST Council Secretariat [2024] 145 taxmann.com 1/66 GST 1 (Mad.) (para 4) distinguished.