Abhinaya Constructions vs. State Of Tamil Nadu
Original PDF →Facts
The petitioner, Abhinaya Constructions, filed multiple writ petitions before the Madurai Bench of the Madras High Court challenging six Orders-in-Original, each dated August 30, 2023, issued by the second respondent, the State Tax Officer, Divisional Central Investigating Wing - 2. These orders pertained to the tax periods 2017-2018 through 2022-2023. The primary contention raised by the petitioner was that the Commissioner of Commercial Taxes lacked the authority to delegate the power to pass these orders to the third respondent, the State Tax Officer, Nagercoil 1 Assessing Circle. The respondents are the State of Tamil Nadu and its tax authorities.
Held
The Court held that the petitioner's submission regarding the invalidity of the delegation was without merit. The Court reasoned that the GST Act allows the Commissioner to designate 'proper Officers' under Section 2(91) of the TNGST Act for completing assessments. The delegation of powers through Notification No. 4 of 2017, issued under Section 5(1) of the TNGST Act, appointing proper Officers, was considered proper. Regarding the challenge to the propriety of the show cause notice, the Court stated that this issue must be decided by the Appellate Authority. The Court found that the petitioner has an alternate statutory remedy under Section 107 of the GST enactments. Consequently, the Court dismissed the writ petitions but granted liberty to the petitioner to file a statutory appeal within 30 days from the date of receipt of a copy of the order.
Key Issues
1. Whether the Commissioner of Commercial Taxes has the authority to delegate the power to issue Orders-in-Original to the State Tax Officer, Nagercoil 1 Assessing Circle, under the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act)? Petitioner's contention: The petitioner argued that the definition of 'Adjudicating Authority' in Section 2(4) of the TNGST Act does not include the Commissioner, Revisional Authority, or other specified authorities. Therefore, any delegation of powers by the Commissioner under Section 5 of the GST enactments to the third respondent, leading to the impugned orders, is invalid and the orders are non est in law. Revenue's contention: The respondents contended that the petitioner's submission is contrary to the scheme of the GST Act. They argued that assessments must be completed by a 'proper Officer,' and the Commissioner is empowered to designate such officers under Section 2(91) of the TNGST Act. The delegation, as per Notification No. 4 of 2017 issued under Section 5(1) of the TNGST Act, appointing proper Officers, is valid.
Sections Cited
Section 2(4), Section 2(91), Section 5(1), Section 107
AI-generated summary — verify with the full judgment below
Heard together (6 matters)
Read from the judgment's own cause title. This page is filed under one of them.
Cause title — parties, addresses and appearances
COMMON ORDER By this common order, all these Writ Petitions are being disposed of.
The impugned orders are primarily challenged on the ground that the Commissioner has no authority to delegate the power to the third respondent [wrongly mentioned as second respondent in the respective Writ Petitions] to pass the impugned order. _____________ Page No. 3 of 7 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.24974 to 24979 of 2023
The learned counsel for the petitioner would submit that the definition of Adjudicating Authority in Section 2(4) of the Tamil Nadu Goods and Services Tax Act, 2017 [hereinafter referred to as ''the TNGST Act''] does not include the Commissioner, Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling etc. It is therefore submitted that the Commissioner has delegated the powers to the third respondent in exercise of power under Section 5 of the respective GST Enactments, pursuant to which, the impugned orders have been passed, are liable to be declared as non est in law.
The above said submission of the learned counsel for the petitioner is contrary to the very scheme under the GST Act. The assessment has to be completed by a proper Officer and it is open for the Commissioner to designate such Officers as proper Officers as defined in Section 2(91) of the TNGST Act and therefore, the delegation in terms of Notification No.4 of 2017 issued under Section 5(1) of the TNGST Act, appointing proper Officers is proper. There is no merit in the submission of the learned counsel for the petitioner. _____________ Page No. 4 of 7 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.24974 to 24979 of 2023
As far as the challenge to the impugned orders on the ground that the show cause notice is not proper is concerned, it is also left open as such issue has to be decided only before the Appellate Authority. The petitioner has an alternate remedy under Section 107 of the respective GST Enactments. Therefore, liberty is given to the petitioner to file a statutory appeal within a period of 30 days from the date of receipt of a copy of this order.
These Writ Petitions are dismissed with the above liberty. No costs. Consequently, connected Miscellaneous Petitions are closed. Index : Yes/ No 10.06.2024 Neutral Citation: Yes / No Speaking Order / Non-Speaking Order smn2 To 1.The Principal Secretary to the Government of Tamil Nadu, Commissioner of Commercial Taxes, Ezhilagam, Chepauk, Chennai - 600 005. _____________ Page No. 5 of 7 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.24974 to 24979 of 2023 2.The State Tax Officer, Divisional Central Investigating Wing - 2, Commercial Taxes Building, Reserve Line Road, Palayamkottai, Tirunelveli - 627 002. 3.The State Tax Officer, Nagercoil 1 Assessing Circle, Commercial Taxes Building, No.131, Mead Street, Nagercoil - 629 001. _____________ Page No. 6 of 7 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.24974 to 24979 of 2023 C.SARAVANAN
, J.
smn2 Common order in W.P.(MD) Nos.24974 to 24979 of 2023 10.06.2024 _____________ Page No. 7 of 7 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.