M/S Akshay Bhatt And Associates vs. Assistant Commissioner A E Central Goods And Services Tax

Held

The Court held that the Assistant Commissioner was competent to issue the notice under Section 151 of the CGST Act. The Court reasoned that Section 151 explicitly states that the Commissioner, or any person authorized by him, can direct a concerned person to furnish information relating to any matter dealt with in connection with the Act. The petitioner's reliance on Section 168 was deemed misconceived. Furthermore, the Court noted that Section 152 of the CGST Act bars the disclosure of information supplied under Section 151, meaning no prejudice would be caused to the petitioner at this stage. Consequently, the Court found no scope for interference with the impugned notice. The writ petition was dismissed.

Facts

The petitioner, represented by Mr. Bhupesh Kandpal, filed a writ petition challenging a notice dated October 17, 2022, issued under Section 151 of the Central Goods and Services Tax Act, 2017 (CGST Act). The notice, annexed as Annexure-6, requested the petitioner to furnish specific information. The petitioner contended that the Assistant Commissioner was not authorized to issue such a notice, citing Section 168 of the CGST Act. The respondents, represented by Mr. Shobhit Saharia and Mr. Vinod Nautiyal, argued that Section 151 of the CGST Act empowers the Commissioner, or an authorized person, to direct the furnishing of information. The court noted that the petitioner was only asked to provide information as per Section 151 and that Section 152 of the CGST Act prohibits disclosure of such information, thus no prejudice was caused at this stage.

Key Issues

1. Whether the Assistant Commissioner is competent to issue a notice under Section 151 of the CGST Act, 2017, requesting information from a taxpayer? Petitioner's contention: The petitioner argued that the Assistant Commissioner lacked the authority to issue the impugned notice, relying on Section 168 of the CGST Act. Revenue's contention: The respondent argued that Section 151 of the CGST Act empowers the Commissioner, or any person authorized by him, to direct the furnishing of information. They further contended that Section 152 of the CGST Act provides for the confidentiality of such information, thereby preventing any prejudice to the petitioner. The revenue did not cite any specific circulars or precedents.