The Tax Publishers

GST--Jurisdiction

Taxpayer Assigned to Center Jurisdiction--Power of State Tax Officer to Issue Show Cause Notice

D.K. Saxena

The learned author seeks to examine the issue as to whether in case of a taxpayer who is assigned to Center Jurisdiction, the Officer of the State Tax has inherent jurisdiction to issue Show Cause Notice and pass assessment order. The related issue is being discussed in the light of relevant statutory provisions, departmental clarifications and a recent Allahabad High Court decision in the case of Ajay Verma v. UOI & Ors., decided on 9-2-2022.

1. Introduction

The term "proper officer" is defined under clause (91) of section 2 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") according to which "proper officer" in relation to any function to be performed under the Act, means the Commissioner or the officer of the central tax who is assigned that function by the Commissioner in the Board.

Section 6 of the CGST Act deals with authorisation of officers of State tax or Union territory tax as proper officer in certain circumstances. As per sub-section (1) of section 6, the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the proper officers for the purposes of this Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify.

Sub-section (2) of section 6 of the CGST Act provides that subject to the conditions specified in the notification issued under sub-section (1), --

(a) where any proper officer issues an order under the Act, he shall also issue an order under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as authorised by the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, under intimation to the jurisdictional officer of State tax or Union territory tax;

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