Minimum amount to be maintained where assessement proceedings are in continuation

Case Title

Mahesh MC

Vs

State of Karnataka(Finance)

Commissioner of Commercial Tax, State

Assistant Commissioner of Tax, State

Union of India(Finance)

Court

Karnataka High Court

Honorable Judge

Justice Sunil Dutt Yadav

Citation

2021 (3) GSTPanacea 22 HC Karnataka
W.P.A. 5242 of 2021

Judgement Date

26-March-2021

Council for Petitioner

Harish V.S Advocate

Council for UOI

K. Hema Kumar AGA

Council for State

K. Hema Kumar AGA

The Karnataka High Court bench of Justice Sunil Dutt Yadav has held that Delegation of matter by adjudication authority shall be academic matter and to be dealt with appropriate case only.

FACTS OF THE CASE

The petitioner was issued an order dtd 24th Jan 2019 under section 5(3) of CGST Act,2017, which as per petitioner(assessee) is contrary to the subject provisions of the Act. The petitioner also denied the order passed under section 83 of CGST Act,2013 by the respondent, in light of of invoices are not available in respect of ITC of Rs. 28,75,000.00 

The reference has been given by the assesse to the case of Gujrat High court case  no 13132/2019, where the court held that  satisfaction of designated officer under section 83 must be only on the name of authority.

The petitioner submits the reply of notice on date 16th Feb 2021. But the same was not considered, and bank accounts was attached by respondent.

The petitioner also request to appoint a designated officer for the fresh proceedings under section section 83 read with section 5(3) of GST Act,2017 and proceedings under section 67 shall not be proceeded against the assesse.

COURT HELD

Considering the facts as recorded, This court held that the challenge  as regards to delegation under section 83 of the Act by the commissioner to other person would remain an academic question, which court think unfit to deal in this present case. When petition is itself being disposed off without the necessasity of  adjudication of legal contention raised. 

Hence the petitioner’s request for continuing with proceedings is rejected.

The petitioner is further directed to maintain  a balance of  Rs. 700,000.00 in his account as nature of assessment proceedings security.

ANALYSIS OF THE JUDGEMENT

The proceedings under section 83 read with section 5 of GST Act, shall be subject matter of proper delegation by commissioner. It is an academic question and shall be subject matter of proper adjudication. Impermissibility of delegation needs to be taken note of.

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Karnataka High Court