ACME Cleantech Solution Pvt. Ltd. Vs Union of India & Ors. (Rajasthan High Court)
The Hon’ble Rajasthan High Court in the case of Acme Cleantech Solutions Pvt. Ltd. v. Union of India & Ors. [Civil Writ Petition No. 11503/2025 order dated August 13, 2025] issued notice and stayed a show cause notice issued by Additional Director, DGGI, while examining the constitutional validity of Notification No. 14/2017-CT and Circular No. 3/3/2017 that vest Additional Director, DGGI with powers of “Proper Officer” under Section 74 of the CGST Act.
Facts:
Acme Cleantech Solutions Pvt. Ltd., (“the Petitioner”) a company engaged in waste-to-energy plant operations.
The Petitioner challenged a show cause notice (SCN) issued by the Additional Director, DGGI under Section 74 of the CGST Act. The company received the SCN during ongoing proceedings and contested the jurisdiction of the Additional Director, DGGI to act as a “proper officer.”
The Petitioner argued that under Section 2(91) of the CGST Act, the power to assign functions of a ‘Proper Officer’ vests solely in ‘the Commissioner’ and not the ‘Board’ itself.
The Petitioner challenged Notification No. 14/2017-CT read with Corrigendum dated July 29, 2019, and Circular No. 3/3/2017 as being ultra vires Sections 2(91), 3, and 5 of the CGST Act to the extent they vest Additional Director, DGGI with powers of ‘Proper Officer’.
Beyond jurisdictional issues, the Petitioner also challenged Para 11 of Circular No. 80/54/2018-GST on Applicability of GST on supply of Waste to Energy Plant, arguing it erroneously restricts the concessional 5% GST rate to goods under Chapters 84, 85, and 94 only, misreading Entry 234 and Entry 201A of Notification No. 1/2017-CT (Rate).
Issues:
- Whether Notification No. 14/2017-CT and Circular No. 3/3/2017, to the extent they vest Additional Director, DGGI with powers of “Proper Officer” under Section 74, are ultra vires Section 2(91) read with Sections 3 and 5 of the CGST Act, 2017?
- Whether the power to assign functions of “Proper Officer” under Section 2(91) vests solely in “the Commissioner” as an individual and not “the Board” as an institution?
- Whether Para 11 of Circular No. 80/54/2018-GST erroneously restricts the concessional 5% GST rate for waste-to-energy plants to goods under Chapters 84, 85, and 94 only, thereby misreading Entry 234 and Entry 201A of Notification No. 1/2017-CT (Rate)?
Held:
The Hon’ble Rajasthan High Court in Civil Writ Petition No. 11503/2025 held as under:
