M/S. Jain Housing And Constructions Limited vs. Additional Commissioner

Held

The Court held that the issue of jurisdiction raised by the petitioner was not a pure question of law but a mixed question of fact and law. Consequently, the appellate authority, under Section 107 of the Central Goods and Services Tax Act, 2017, was best suited to decide this question. The Court found no impediment in Section 107 of the Act that would prevent the appellate authority from deciding the jurisdiction of the officers who issued the notice and the order. Therefore, the petitioner was relegated to avail the statutory remedy of appeal. The Court also directed that if the petitioner raises the issue of jurisdiction in their appeal memo, it would be lawful for the appellate authority to decide the said issue in accordance with law. The writ petition was disposed of without expressing any opinion on the merits of the case. The time consumed before the High Court was to be excluded for the purpose of limitation for filing the appeal.

Facts

M/s. Jain Housing and Constructions Limited (the petitioner) filed a writ petition challenging an Order-in-Original (No. 1112024-25-Adjn(ADC)-GST dated 23.04.2024) issued by the Additional Commissioner, Central Tax, Ranga Reddy GST Commissionerate (the respondent). The order was passed under Section 73 of the Central Goods and Services Tax Act, 2017, for the financial year 2018-2019. The petitioner contended that the respondent authority lacked jurisdiction to issue the show-cause notice and the subsequent order, as the petitioner's registration was at Gachibowli GST Division, Ranga Reddy District, and the respondent did not have the authority. While the petitioner had a statutory remedy of appeal under Section 107 of the Act, they argued that the appellate authority would not be able to decide the question of the issuing authority's jurisdiction.

Key Issues

1. Whether the impugned Order-in-Original, issued under Section 73 of the Central Goods and Services Tax Act, 2017, is liable to be quashed on the grounds of lack of jurisdiction by the issuing authority? The petitioner argued that the respondent No. 1 lacked jurisdiction to issue the show-cause notice and the impugned Order-in-Original because the petitioner's GST registration was in the Gachibowli GST Division, Ranga Reddy District, and the respondent did not possess the requisite authority. They contended that while a statutory appeal under Section 107 of the Act was available, the appellate authority would be unable to adjudicate on the jurisdictional issue of the original issuing authority. The respondent argued that the impugned show-cause notice and Order-in-Original were issued by competent authorities and that the petitioner possessed a remedy of appeal.