Proper Officer has jurisdiction
Case Title | Kishor Kumar Arora vs Union of India & Anr |
Court | Delhi High Court |
Honorable Judges | Justice Rajiv Shakdher and Justice Tara Vitasta Ganju |
Citation | 2022 (5) GSTPanacea 350 HC Delhi W.P.(C) 10343/2021 & CM APPLs. 31842/2021, 14102/2022 |
Judgement Date | 26-May-2022 |
Council for Petitioner | Mr. J.K Mittal and Vandana Mittal |
Council for Respondent | Mr. Harpreet Singh and Arunesh Sharma |
In favour of | Petitioner |
Section | Section 2, 22 and 70 of the CGST Act, 2017 |
The Delhi High Court, bench of Justices Rajiv Shakdher and Tara Vitasta Ganju that the concerned officer did not have jurisdiction to issue show cause notice or pass orders as the taxable turnover was less than the threshold limit.
FACTS OF THE CASE
The petitioner was engaged in business of tobacco products. A show-cause notice was issued against the petitioner and based on an incorrect advice rendered by the petitioner’s Chartered Accountant, it deposited amount determined in the notice. It filed writ petition against the notice on the ground that the show cause notice issued, order-in-original and order-in-appeal passed were outside the jurisdiction of proper officers.
Proper Officer has jurisdiction
COURT HELD
The Honorable High Court observed that the taxable turnover of petitioner after excluding taxes and cesses was less than threshold limit of Rs. 20,00,000 fixed for tobacco products and the same was evident from the annexure-1 appended to impugned notice. Therefore, the concerned officer did not have jurisdiction to issue show cause notice or pass orders as the taxable turnover was less than the threshold limit. Thus, the impugned show cause notice, order-in-original and order-in-appeal were set aside and the department was directed to refund amount deposited along with interest at 6%.
Proper Officer has jurisdiction
ANALYSIS OF THE JUDGEMENT
As per the above case we analyse that Proper officer has no jurisdiction to issue SCN whose taxable turnover is less than threshold limit.
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