HC Set Aside Order Disallowing ITC Which Was Passed by Superintendent Who Exceeded Jurisdictional Prescribed Limits

Case Details: Mansoori Enterprises v. Union of India - [2024] 160 taxmann.com 261 (Allahabad)

Judiciary and Counsel Details

• • Alok Mathur, J.
  • Dheeraj Srivastava, Shailesh Verma for the Petitioner.
  • A.S.G.I., Dipak Seth, Kuldeepak Nag (K.D. Nag) for the Respondent.

Facts of the Case

In the present case, the assessee challenged the order passed by Superintendent, Central Goods and Services Tax and Central Excise, under Section 73 of CGST Act, 2017. In the order, the ITC was disallowed and the assessee filed writ petition & contested jurisdiction of Superintendent to pass order, citing Circular No. 31/05/2018-GST dated 9.2.2018.

High Court Held

The Honorable High Court noted that as per Circular No. 31/05/2018-GST, the Superintendent’s jurisdiction was limited to matters not exceeding Rs. 10,00,000, while amount involved in the present case exceeded Rs. 16,00,000.

Therefore, the Court observed that the Superintendent lacked jurisdiction to issue order in question since it exceeded limits set in Circular No. 31/05/2018-GST. Thus, the Court held that the impugned orders were quashed and revenue authority was granted liberty to initiate fresh proceedings in accordance with law.