Order Exceeding Rs.10 Lakh Can’t be Passed by the GST & Central Excise Superintendent
The jurisdictional limit of the Central Excise Superintendent and the GST with respect to orders above Rs. 10,000,000 is addressed in the recent verdict rendered by the Allahabad High Court in the case of Mansoori Enterprises v. U.O.I. The court’s ruling clarifies the proper procedure and authority for passing such orders under the CGST Act.
Mansoori Enterprises, the petitioner, contested an order dated November 20, 2023,passed under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) by the Superintendent, Central Goods and Services Tax and Central Excise, Range – Bahraich. The primary argument was based on a circular from the Ministry of Finance, Department of Revenue, Government of India, stating that the Superintendent lacked authority to make the order.
The circular dated 9.2.2018 assigned jurisdiction to various authorities based on the maximum amount of Central Tax involved. According to this circular, the Superintendent’s power was limited to matters not exceeding Rs.10,00,000. However, the amount involved in this case was more than Rs.16,00,000, rendering the Superintendent’s order without jurisdiction.
The respondent’s counsel acknowledged that the contested order was beyond the Superintendent’s authority in accordance with the circular after receiving instructions from the Assistant Commissioner, Central GST and Central Excise Division, Lucknow – IV, Barabanki. As a result, the court set aside the order and granted liberty to the respondents to proceed afresh in accordance with the law.
The copy of the order is as under:
From,
Krishnakant Jakhotia
Mobile No :- 9422507911
Email Id :- taxtalknew@gmail.com
