2024 (7) TMI 605 - HC - GST

Authority to delegate the power to the third respondent wrongly mentioned as second respondent in the respective Writ Petitions to pass the impugned order - Challenge to the impugned orders on the ground that the show cause notice is not proper. Authority to delegate the power to the third respondent wrongly mentioned as second respondent in the respective Writ Petitions to pass the impugned order - HELD THAT - The assessment has to be completed by a proper Officer and it is open for the Commissioner to designate such Officers as proper Officers as defined in Section 2(91) of the TNGST Act and therefore, the delegation in terms of Notification No.4 of 2017 issued under Section 5(1) of the TNGST Act, appointing proper Officers is proper. There is no merit in the submission of the learned counsel for the petitioner. Challenge to the impugned orders on the ground that the show cause notice is not proper - HELD THAT - As far as the challenge to the impugned orders on the ground that the show cause notice is not proper is concerned, it is also left open as such issue has to be decided only before the Appellate Authority. The petitioner has an alternate remedy under Section 107 of the respective GST Enactments. Therefore, liberty is given to the petitioner to file a statutory appeal within a period of 30 days from the date of receipt of a copy of this order. Petition dismissed.

Summary

Issues involved:
Challenge to delegation of power to pass impugned orders by the Commissioner, definition of Adjudicating Authority under TNGST Act, challenge to impugned orders on the ground of improper show cause notice.

Analysis:

The judgment addresses the challenge to the delegation of power by the Commissioner to the third respondent to pass the impugned orders. The petitioner argues that the Commissioner exceeded authority as the definition of Adjudicating Authority under the TNGST Act does not include the Commissioner. However, the court disagrees, stating that the assessment must be completed by a proper Officer designated by the Commissioner. The delegation of powers to the third respondent is deemed proper under Notification No.4 of 2017 issued under Section 5(1) of the TNGST Act. The court finds no merit in the petitioner's submission, upholding the validity of the delegation.

Regarding the challenge to the impugned orders based on the inadequacy of the show cause notice, the court rules that this issue should be addressed before the Appellate Authority. The petitioner is granted liberty to file a statutory appeal within 30 days from the date of receiving the order. This ensures that the petitioner has an alternative remedy under Section 107 of the respective GST Enactments to contest the show cause notice's validity through the proper appellate channels.

Ultimately, the Writ Petitions are dismissed with the granted liberty for the petitioner to pursue a statutory appeal. No costs are awarded, and connected Miscellaneous Petitions are closed as a result of this judgment.