GST SCN Contested for Want of Proper Officer Jurisdiction: Calcutta HC

Poulami Ghoshal Vs Assistant Commissioner of Revenue (Calcutta High Court)

The Calcutta High Court considered a writ petition challenging a show-cause notice dated 19 July 2024 issued under Section 74 of the CGST/WBGST Act, 2017 for the tax period 2023–24 (up to February 2024). The petitioner questioned the jurisdiction and competence of the issuing authority, contending that proceedings under Section 74 must be initiated by the “proper officer” handling the matter. It was argued that although the Assistant Commissioner of Revenue may be authorised to act as Assistant Commissioner of State Tax, while exercising powers under the Act, the officer must act in the latter capacity; issuance of the notice as Assistant Commissioner of Revenue was alleged to be without authority and a non-starter.

The State opposed the challenge, relying on a notification dated 29 March 2019 by which the Commissioner of State Tax delegated powers under various provisions of the Act to officers posted in the Directorate of Revenue Intelligence and Enforcement, West Bengal. Reference was made to the relevant entry indicating that an Assistant Commissioner of Revenue, by virtue of such delegation, is competent to act as a “proper officer” under Section 74. It was also submitted that interference at the show-cause stage was unwarranted, particularly as the petitioner had not yet responded to the notice.