Madras HC: Taxpayers who are assigned to either CGST or SGST authorities can’t be adjudicated by counterparts

in the case of Ram Agencies

Assessees who are assigned to either Central Tax authorities or State Tax authorities under respective Central Goods and Services Tax Act, 2017 and/or State Goods and Services Tax Act, 2017 cannot be subjected to further proceeding by counterparts under respective GST enactments.

Centre/State GST Officers – Cross empowerment – Assessment years 2017-18 to 2019-20 – Assessee had challenged Order-in-Original for assessment years 2017-18, to 2019-20 – Specific case of assessee was that impugned order had been passed despite stay granted by instant court against extending period of limitation which had been stayed – Impugned order was further assailed on ground that assessee was assessed to State Tax Authorities and therefore, impugned order passed by Central Tax Authorities was contrary to law settled in Tvl. Vardhan Infrastructure vs. Special Secretary, 2024 (3) TMI 1216 – Assessee was assessed by State authorities pursuant to allocation made by Central Government in terms of Circular No.1/2017-GST (Council), dated 20-9-2017 – HELD: In Tvl. Vardhan Infrastructure’s case [supra], it was concluded that in absence of notification issued for cross empowerment, authorities from counterpart department cannot initiate proceedings where an assessee is assigned to counterpart – Therefore, impugned Order-in-Original was to be set aside [Section 6 of Central Goods and Services Tax Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017] [Para 6] [In favour of assessee]