Case Law Details
Metal Edge Through Its Prop Ayushie Bansal Vs Sales Tax Officer Class II & Anr. (Delhi High Court)
GST: Calling of records of petitioner in connection with investigation into affairs of other Assessee is not proceeding against Assessee
In this case, Ayushie Bansal, the sole proprietor of M/s Metal Edge, challenged the cancellation of her GST registration and a show cause notice, alleging they were issued by an officer who lacked jurisdiction. The crux of the argument laid on who is considered a ‘proper officer’ under the CGST Act.
Despite Petitioner Ayushie Bansal’s contention, the court found that the Sales Tax Officer Class II did hold the authority to issue the contested notices. This was due to a prior notification that empowered all the Assistant Commissioners and Goods and Services Tax Officers to perform the functions under Sections 73 & 74 of the CGST Act. Thus, the court ruled that the contention of lacking jurisdiction was unmerited.
Petitioner also argued that the show cause notice was jurisdictionally invalid, as parallel investigations had already commenced in Chandigarh. However, the court dismissed this argument as it was observed that the said investigation pertained to another individual (Mr. Rajneesh Bansal) and not Ayushie Bansal. The court also affirmed Bansal’s right to challenge the maintainability of proceedings in the impugned show cause notice.
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