Tvl. SVJ Holdings Vs Additional Commissioner of CGST and Central Excise (Madras High Court)
Summary: The Madras High Court considered two writ petitions challenging the assessment order and penalty order primarily on the ground of jurisdiction. The petitioner relied on Notification No.2/2022 Central Tax dated 11.03.2022, contending that the notification conferred adjudicatory powers on specified officers in relation to notices issued by the DGGI. Since the adjudication was allegedly not carried out by one of the officers listed therein, the petitioner contended that the impugned orders were issued without jurisdiction. The respondents sought time to file their counter. On examining the documents, the High Court noted that the show cause notice had been issued by the DGGI and found that a prima facie case was made out that the assessment and penalty orders had been issued in contravention of Notification No.2/2022. The Court consequently granted an interim stay of the impugned orders until the next hearing date and directed that the matter be listed on 02.09.2026.
Challenge to Assessment and Penalty Orders
In the two writ petitions, the assessment order and penalty order were challenged primarily on the ground of jurisdiction.
Learned counsel for the petitioners referred to Notification No.2/2022 Central Tax dated 11.03.2022 and submitted that an amendment had been effected conferring adjudicatory powers on the officers listed in Table 5 in relation to notices issued by the DGGI.
On that basis, learned counsel submitted that, since the adjudication was not carried out by one of the officers listed therein, the impugned orders had been issued without jurisdiction.
Submissions of the Respondents
Mr. Rajendran Raghavan, learned senior standing counsel, accepted notice for the first respondent, while Mr. S.T. Bharath Gowtham, learned senior standing counsel, accepted notice for the second respondent.
The respondents sought time to file a counter.
Show Cause Notice Issued by DGGI
On perusal of the documents, the Madras High Court found that the show cause notice had been issued by the DGGI.
The Court therefore recorded that a prima facie case was made out that the assessment and penalty orders had been issued in contravention of Notification No.2/2022.
The relevant TaxGuru publication on Notification No.2/2022 Central Tax records the notification concerning adjudication of show cause notices issued by officers of the Directorate General of Goods and Services Tax Intelligence.
Interim Stay Granted by Madras High Court
Having found a prima facie case on the jurisdictional issue, the High Court directed that there would be an interim stay of the orders impugned in the writ petitions until the next hearing date.
The Court did not finally adjudicate the jurisdictional issue at this stage. The order records only the prima facie finding based on the documents placed before it.
Next Hearing Date
The Madras High Court directed that the matter be listed on 02.09.2026.
Cases Discussed
No judicial precedent was expressly cited or discussed in the supplied order.
Final Decision
The Madras High Court granted an interim stay of the impugned assessment and penalty orders after finding a prima facie case that they had been issued in contravention of Notification No.2/2022 Central Tax, since the show cause notice had been issued by the DGGI. The matter was directed to be listed on 02.09.2026.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
In these two writ petitions the assessment order and penalty order are challenged primarily on the ground of jurisdiction. Adverting to Notification No.2/2022 Central Tax dated 11.03.2022, learned counsel submits that an amendment was effected conferring adjudicatory powers on the officers listed in table 5 in relation to notices issued by the DGGI. Since the adjudication was not carried out by one of the officers listed therein, he submits that the impugned orders were issued without jurisdiction.
2. Mr. Rajendran Raghavan, learned senior standing counsel, accepts notice for the first respondent and Mr.S.T.Bharath Gowtham, learned senior standing counsel, accepts notice for the second respondent. They seek time to file a counter.
3.On perusal of the documents, it is evident that the show cause notice was issued by the DGGI. Hence, a prima facie case is made out that the assessment and penalty orders were issued in contravention of Notification No.2/2022. Therefore, there will be an interim stay of the orders impugned herein until the next hearing date.
4. List the matter on 02.09.2026.
