Subhash Chandra Narendra Kumar Nahar Vs State of Madhya Pradesh And Others (Madhya Pradesh High Court)
The Madhya Pradesh High Court decided two writ petitions together due to similarity of issues, taking facts from one petition for convenience. The petitioner challenged an order dated 30.12.2025 passed by the Assistant Commissioner of State Tax, Anti-Evasion Bureau, Indore, whereby a tax liability of ₹7,01,61,092 was imposed.
The primary contention raised by the petitioner was that the authority who passed the impugned order was not a “Proper Officer” as defined under Section 2(91) of the Central Goods and Services Tax Act, 2017. It was argued that the officer lacked jurisdiction and competence to pass such an order, rendering it invalid.
The State raised a preliminary objection regarding maintainability of the writ petition, citing the availability of an alternative statutory remedy of appeal under Section 107 of the CGST Act. The State further justified the order by explaining that an inspection conducted under Section 67(1) of the M.P. GST Act revealed that a supplier had availed and passed on inadmissible input tax credit (ITC) without payment of tax. The petitioner, being a recipient of such ITC, was held to have violated statutory conditions under Sections 16(2)(b) and 16(2)(c), making the ITC inadmissible. The State also relied on Section 6 of the Union Territory GST Act, 2017 to support the competence of the officer.
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