Mohit Kirana Store Vs Central Board of Indirect Taxes and Customs & Another (Rajasthan High Court)
Rajasthan High Court, in the case of Mohit Kirana Store Vs. Central Board of Indirect Taxes and Customs & Another, has upheld its interim stay order regarding the delegation of power to issue summons under the Central Goods and Services Act, 2017.
The revenue authorities argued that the impugned circular, delegating this power to the Superintendent, was issued by the Commissioner, who is legally empowered to do so. However, the petitioner contended that the Circular No. 3/3/2017 – GST dated: 5th July, 2017 explicitly states the delegation originated from the Central Board of Indirect Taxes and Customs (CBIC), which lacks such authority. The petitioner’s counsel highlighted that the power of delegation, as per Section 2(91) of the CGST Act, 2017, lies with the Commissioner within the Board, not the Board itself.
After hearing arguments from both sides, the High Court found that the petitioner had presented a strong prima facie case. Consequently, applications to vacate the stay were rejected, and the interim order was made absolute. Given the significance of the legal question, the court has prioritized the petition for a final hearing in the coming weeks.
