GST – Cross-empowerment -CGST Act & Tamil Nadu GST Act – Petitioners assigned to State GST but proceedings initiated by Central Authorities or vice-versa – Absence of Notification under Section 6 of the Act.
The petitioners have been assigned to the TN State GST authorities but they are subjected to proceedings initiated by the Central Authorities as per the details given in para 3 of the judgment.
In para 5 of the judgment, the details of the Petitioners assigned to Central GST but proceedings initiated by the TN State GST authorities.
The proceedings of the Central authorities and State authorities are challenged on the ground of lack of jurisdiction and in the absence of a proper notification under Section 6 of the respective GST.
HELD that the scheme of the enactments is clear that the assessees whether assigned to Central or State Tax Authorities are required to file only one set of Return under Chapter IX of the respective GST enactments of 2017 and Rules. They are pari materia with each other. They are the same and capture all the details. The returns are to be filed in common portal of goods and services tax electronic portal referred to in Section 146. The payment of tax either under CGST or TNGST are at the same rate. In paras 9 to 27, there was elaborate reproduction, reference, discussion and reference to the provisions of law including GST Council meeting decisions. In para 28 of the judgment, it was noted that there is no cross-empowerment. In para 61 of the judgment, it was furthernoted that Section 6(1) of the respective GST enactments empowers Government to issue notification on the recommendation of GST Council for cross-empowerment but no notification was issued except for the purpose of refund.
If an assessee has been assigned administratively with the Central authorities, pursuant to the decision taken by the GST Council in the Circular No.01/2017 dated 20.9.2017, the State authorities have no jurisdiction to interfere with the assessment proceedings in the absence of a corresponding Notification under Section 6 of the respective GST enactments. Same is the case with the assessee assigned to the State authorities.
Circular No.1/2017 dated 20.9.2017 was issued for division of taxpaper base between Centre and States to ensure a Single Interface under GST between Central and State Tax Officers. However, notification for cross-examination to investigation, search and assessment to avoid cross interference was not issued.
Judgment dated ….2024 in W.P.No.34972 of 2023 Tvl. Vardhan Infraastructure Vs. The Special Secretary and others with connected writ petitions.
a8f418e7ae70679d4b145099817cd9984382c7a575dcfc2fcd5b467c8dff7bcd1711726548.pdf (ecourts.gov.in)
