GST officers has no jurisdiction beyond designated Area: Rajasthan HC

In a significant ruling, the Rajasthan High Court has clarified in an interim order that the jurisdictional boundaries for GST officers, particularly addressing the limits of the Joint Commissioner (Investigation) Enforcement Wing, Rajasthan–I, Jaipur.

Key Questions raised in the petition was regarding the scope of Powers -Does the notification dated 25.02.2020 grants blanket powers to Joint Commissioners, Deputy Commissioners, and Assistant Commissioners under Section 73 of the 2017 Act across the entire state?

Jurisdiction Limits: Can the Joint Commissioner (Investigation) Enforcement Wing, Rajasthan–I, Jaipur exercise adjudicating powers beyond their designated jurisdiction, specifically in Udaipur?

Court’s Interim Ruling:
The notification dated 25.02.2020 authorizes officers of specific ranks to exercise powers under Section 73 but restricts them to their respective jurisdictions.

The jurisdiction of the Joint Commissioner (Investigation) Enforcement Wing, Rajasthan–I, Jaipur does not extend to areas like Udaipur.

The court stayed coercive actions against the petitioner, Agrawal Namkeen, highlighting the importance of jurisdiction in GST adjudication.

This ruling is likely to sets a precedent for similar cases across India, where enforcement wings must ensure their actions are within their legally designated areas. However, the order passed has granted an interim relief from coercive action. The final decisions is subject to further pleading of the revenue. It prima facie appears that the issue would be settled in favour of the taxpayers. Till that time, one can hope that the taxpayers may get a favourable order.

 

Other Businesses facing jurisdictional overreach by state GST authorities in other high courts may also contest such actions, as improper jurisdiction can invalidate orders.

Citation : Dtd 10-May-2024 | Agrawal Namkeen | D. B. Civil Writ Petition No. 6442/2024