2019 (7) TMI 999 - HC - GST

Jurisdiction on assessee - State Gov. OR Central Gov. - as per the decision of State Level Committee the administrative control for all purposes over the petitioner has been entrusted to the Center which is evident from the list of tax payers of Alwar district having turnover of more than 1.5 crore - validity of SCN issued by state official - Scope of division of tax payer base dated 20.09.2017 (Annexure-3) contained in Circular No.01/2017 dated 20.09.2017 - HELD THAT - Issue notice to the respondents. Rule is made returnable by six weeks.

Summary

Issues: Jurisdiction of the State under Rajasthan Goods and Service Tax Act, 2017 and GST Council guidelines for division of taxpayer base.

In the judgment delivered by the Rajasthan High Court, the contention raised by the learned counsel for the petitioner was that the impugned notice served on the petitioner by the respondent exceeded the respondent's competence as the State lacked jurisdiction over the petitioner. This argument was based on Sections 6(1) and 6(2)(b) of the Rajasthan Goods and Service Tax Act, 2017, and the GST Council guidelines for the division of the taxpayer base dated 20.09.2017. The counsel argued that as per Circular No.1/2017 dated 20.09.2017, issued pursuant to the decision of the State Level Committee, administrative control over the petitioner had been entrusted to the Center. This was supported by evidence presented by the petitioner, showing the list of taxpayers in Alwar district with a turnover of more than 1.5 crore, where the petitioner's name appeared at serial no.257. Consequently, the court issued notice to the respondents and made the rule returnable by six weeks, restraining any coercive action against the petitioner in the interim until the matter was resolved. The case was also connected with D.B. Civil Writ Petition No.5015/2019 for further consideration.