Whether Proper Officer has jurisdiction to issue SCN with respect to the applicant whose taxable turnover is less than threshold limit?

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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Kishor Kumar Arora

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Delhi High Court