SCN Can Be Issued by GST Authority Even With Regard to Dealings of Company in Other States | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 9 October, 2024

Recent Posts

News, Blog, FEMA & Banking

HC Set Aside Director’s Conviction for Cheque Dishonour as Co. Wasn’t Made an Accused or Served Notice u/s 138 NI Act

Blog, News, Insolvency and Bankruptcy Code

Arbitrator to Assess CIRP Plan’s Effect on Applicant’s Claim, as CIRP Was Approved During Arbitration Pendency | HC

Latest from Taxmann

GST jurisdictional error

Case Details: Ethos Limited v. Additional Commissioner, CGST Audit - [2024] 167 taxmann.com 122 (Punjab & Haryana)

Judiciary and Counsel Details

  • Sanjeev Prakash Sharma & Sanjay Vashisth, JJ.
  • Sujit Gosh, Sr. Adv., Abhinav Sood, Ms Mannat Waraich, Ms Anishka Aggarwal, Ms Anmol Gupta, Sayyam Garg & Jaywardhan, Advs. for the Petitioner.

Facts of the Case

The Petitioner challenged the SCN issued by the GST authorities under Section 74 of the Central Goods and Services Tax Act, 2017 (‘CGST’), contending that the notice was issued by the State GST officer of Punjab, while the supply had taken place not only in Chandigarh but also in other states. The petitioner argued that there was a jurisdictional error in issuing the notice, as the supply occurred in multiple states, including Assam, New Delhi, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.

The petitioner claimed that the notice had been issued erroneously by the Punjab GST officer, who assumed jurisdiction over supplies made in other states, and that they had already paid tax in these other states. Therefore, they contended that the Punjab GST officer did not have the authority to demand tax or initiate proceedings in this matter.

High Court Held

The High Court rejected the petitioner’s claims, stating that the SCN was based on an audit report for the periods 2017-18, 2018-19, and 2019-20, conducted under Section 65 of the CGST Act. According to Sections 4, 5, and 6 of the CGST Act, the powers of State GST officers and Central GST officers are the same. Once a notice is issued by a State GST officer, no other officer from another state can initiate proceedings on the same subject matter. The court also noted that the petitioner had not submitted any reply to the SCN and had instead directly approached the court.

Therefore, the court held that there was no jurisdictional error in the issuance of the SCN by the Punjab GST officer, and it allowed the petitioner to present its objections and arguments in response to the SCN before the authority, who would then consider and pass appropriate orders.

List of Cases Reviewed

  • Stalwart Alloys India Pvt. Ltd. v. Union of India & Ors., CWP No. 1661 of 2022, decided on 28-8-2024, relied on.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied