9911796707
TMI Blog2024 (9) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... 18-19, 2019-20 was examined by the internal Audit Team of Cirlce-1, Audit Commissionerate CGST, Chandigarh in terms of Section 65 of the CGST Act. The petitioner s objection that the officer having no jurisdiction to issue notice to it on the assumption of having its business in other States is noticed and to be rejected as misconceived. There is no jurisdictional error on the part of the respondents in issuing show cause notice under Section 74 of the CGST Act. The powers of the officers who have been appointed under Sections 4, 5 of the CGST Act and those appointed under Section 6 of the CGST Act are the same. A person is appointed by the State is authorized to be a proper officer for the purpose of this Act - once notice has been issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady taken a decision and virtually held the petitioner to be guilty of having evaded payment of tax, and therefore, the respondents have also proposed to impose penalty under Section 74 of the CGST Act and application of interest under Section 50 of the CGST Act. 3. Learned counsel for the petitioner has taken us to the various aspects of the show cause notice and strenuously argued that the officer has proceeded to decide on facts and has reached to conclusion by assuming factual supply of goods and non-payment of tax. 4. Learned counsel for the petitioner further submitted that the show cause notice demands non-payment of tax in relation to supply of goods which have never been supplied in the State of Punjab and relates to goods of anoth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt heads, namely, customer belongs to Chandigarh and redeemed in other States, Customer belongs to other States and redeemed in other States and Customer belongs to other States and redeemed in Chandigarh. However, the entire demand has been raised on the petitioner at Chandigarh location irrespective of the place where the vouchers have been issued or utilized. He, therefore, submits that the show cause notice has been issued by committing jurisdictional error. 7. We have carefully noticed the submissions. 8. We find that the petitioner has not submitted any reply to the notice issued under Section 74 of the CGST Act which is a show cause notice. The petitioner has directly approached this Court challenging the said show cause notice on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s conferred or imposed under this Act on any other officer of central tax who is subordinate to him. (3) The Commissioner may, subject to such conditions and limitations as may be specified in this behalf by him, delegate his powers to any other officer who is subordinate to him. (4) Notwithstanding anything contained in this section, an Appellate Authority shall not exercise the powers and discharge the duties conferred or imposed on any other officer of central tax. 6. Authorisation of officers of State Tax or Union Territory tax as proper officer in certain circumstances. (1) Without prejudice to the provisions of this Act, the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein, such proper officer is authorized to issue the notice and proceed. As per Section 6 (2) (b) of the CGST Act once he issues such notice, no proceedings shall be initiated by any other proper officer on the same subject matter. From above, it is apparent that once notice has been issued to the petitioner under Section 74 (1) of the CGST Act by the State GST Officer of Punjab, no other officer from any other State would be authorized to initiate proceedings and the question regarding evading of tax or availing of wrongful input tax credit or other issues in terms of Section 74 will be examined by the same officer alone. 11. This Court on the question of proper officer in the case of CWP No. 1661 of 2022 M/s Stalwart Alloys India Private ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the Act. In view of the above, we hold that the authority at Chandigarh would have the power to issue notice under Section 74 of the CGST Act even with regard to dealings of the company in other States, and therefore, there is no jurisdiction error. 12. We have not given any findings relating to the challenge made by the petitioner regarding the contents of the notice under Section 74 of the CGST Act and we have leave it open to the petitioner to take up all arguments and objections in its reply. The authority would consider the reply of the petitioner and is expected to pass a speaking. If the petitioner is still aggrieved of the order, after the reply is received, he would be free to avail remedies before the appropriate forum as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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