Lovelesh Singhal Vs Central Borad of Indirect Taxes & Customs (Delhi High Court)
The Delhi High Court considered a writ petition challenging the validity of Circular No. 3/3/2017 dated 5 July 2017 issued by the Central Board of Indirect Taxes and Customs, as well as a summons issued under Section 70 of the CGST Act pursuant to that circular. The petitioner contended that the circular, which assigns functions of “proper officer” to specified central tax officers, was issued without authority of law, arguing that such power vests exclusively in the “Commissioner in the Board” and not in the Board itself. Relying on statutory definitions under Sections 2(16), 2(25), and 2(91) of the CGST Act, read with Section 168, the petitioner asserted that the circular and the consequential summons were invalid.
Read SC Judgment in this case: SC Upholds GST Circular on Proper Officer Assignment Under Section 168
The Court examined the statutory framework, particularly Section 168, which empowers the Board to issue orders, instructions, or directions for uniform implementation of the Act, and provides that specified powers are to be exercised by the Commissioner or Joint Secretary in the Board with the Board’s approval. The Court noted that the circular was issued under the signature of the Commissioner, GST, and prima facie indicated approval of the Board. It observed that the Commissioner forms part of the Board and that there was no material to infer that the circular was not routed through or approved by the Commissioner in the Board as contemplated under Section 168(2).
