A writ petition challenged a demand intimation issued by an Additional Director of GST Intelligence as incompetent under Section 74(5) CGST Act. The court held the circular permitted DGGSTI officers to issue show-cause notices and the impugned communication was merely an intimation; interference declined.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.7913 of 2024
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Sona Infracon Private Limited A company registered under Companies Act, 1956 having its office at Vill Ababakarpur, P.O. Manpur (Tajpur), P.S. Bangara, Dist Samastipur, Bihar- 848130 through its Managing Director Shri. Naween Kumar (Male, aged about 43 Years) son of Late. Ram Chandra Singh, resident of Flat No. B-21, Geetanjali Apartment, Behind J.D. Womens College, Bailey Road, LBS Nagar, District Patna, Bihar 800023.
... ... Petitioner/s
Versus
... ... Respondent/s
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Appearance : For the Petitioner/s : Mr. Sadashiv Tiwari, Advocate For the Respondent/s : Dr. K. N. Singh, Additional Solicitor General Mr. Anshuman Singh, Sr. SC, CGST & CX Mr. Alok Kumar, Advocate Mr. Shivaditya Dhari Sinha, Advocate
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CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE HARISH KUMAR ORAL ORDER
(Per: HONOURABLE THE CHIEF JUSTICE)
cause notice has been issued by an Officer, who is not competent to do so. The petitioner specifically refers to Annexure-P2 circular.
Patna High Court CWJC No.7913 of 2024(2) dt.09-05-2024 2/3
Commissioner of Central Tax was assigned as the Proper Officer inter alia under sub-section (5) of Section 74, while the Superintendent of Central Tax was assigned as the Proper Officer under sub-section (5) of Section 73 of the C.G.S.T. Act. The impugned show-cause notice is issued by the Additional Director under Section 74(5). The learned Counsel for the petitioner admits that the Additional Director is equivalent to an Assistant Commissioner.
The central tax officers of Audit Commissionerates and Directorate General of Goods and Services Tax Intelligence (hereinafter referred to as "DGGSTI") shall exercise the powers only to issue show cause notices. A show cause notice issued by them shall be adjudicated by the competent central tax officer of the Executive Commissionerate in whose jurisdiction the noticee is registered. In case there are more than one noticees mentioned in the show cause notice having their principal places of business falling in multiple Commissionerates, the show cause notice shall be adjudicated by the competent central tax officer in whose jurisdiction, the principal place of business of the noticee from whom the highest demand of central tax and/or integrated tax (including cess) has been made falls.
can be done only by the Assistant Commissioner and not an Additional Director of G.S.T. Intelligence. We are of the opinion
Patna High Court CWJC No.7913 of 2024(2) dt.09-05-2024 3/3
that there is no reason to find incompetence on the Officer, who has issued the impugned communication especially since the circular specifically permits show-cause notices to be issued by the Central Tax Officers of Audit Commissionerates and Directorate General of G.S.T. In fact, what is impugned is not even a show-cause notice, it is just an intimation to pay up the amounts indicated therein failing which the only consequence is the issuance of a show-cause notice under Section 74(1) for which also the Additional Director is competent.
(K. Vinod Chandran, CJ)
( Harish Kumar, J)
sharun/-
U
1 issue framed by the court
Whether the Additional Director, DGGSTI was competent to issue the impugned communication under Section 74(5) CGST Act in view of the Proper Officer assignment circular.
3 provisions across 1 enactments
Sona Infracon Private Limited through its Managing Director Shri Naween Kumar
Directorate General of GST Intelligence, Patna Zonal Unit
Additional Director, Directorate General of GST Intelligence, Patna Zonal Unit
K. Vinod Chandran
Harish Kumar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
