Taxpayers Who Are Assigned to Either CGST or SGST Authorities Can’t Be Adjudicated by Counterparts | HC

Case Details: Ram Agencies v. Assistant Commissioner of Central Tax - [2024] 162 taxmann.com 240 (Madras)

Judiciary and Counsel Details

• • C. Saravanan, J.
  • A. Satheesh Murugan for the Petitioner.
  • N. Dilipkumar, Standing Counsel for the Respondent.

Facts of the Case

The petitioner was assessed to the State Tax Authorities pursuant to the allocation made by the Central Government in terms of Circular No.1/2017-GST (Council), dated 20.09.2017.The petitioner challenged the Order-in-Original passed by the respondent in respect of the assessment years 2017-2018, 2018-2019 and 2019-2020.

The specific case of the petitioner was that the impugned order had been passed despite the stay being granted by the Principal Seat of the Madras High Court against the operation of notification extending the period of limitation. The order was further assailed on the ground that the petitioner was assessed to the State Tax Authorities and therefore, the impugned order passed by the Central Tax Authorities was also contrary to the law settled by the Court.

High Court Held

The Madras High Court held that the issue regarding cross-empowerment and the jurisdiction of the counterparts to initiate proceedings when an assessee has been allocated either to Central Tax Authorities or to the State Tax Authorities was examined in detail in case of Tvl. Vardhan Infrastructure [2024] 160 taxmann.com 771 (Madras). After examining the provisions, the Court concluded that in the absence of notification issued for cross-empowerment, the authorities from the counterpart Department cannot initiate proceedings where an assessee is assigned to the counterpart. Therefore, the impugned Order-in-Original was to be set aside.

List of Cases Reviewed

• • Tvl. Vardhan Infrastructure v. Special Secretary, 2024 (3) TMI 1216, followed.

List of Cases Referred to

• • Tvl.Vardhan Infrastructure v. The Special Secretary 2024 (3) TMI 1216 (para 3).