The ‘proper officer’ has been empowered under GST law to execute and administer compliance of various Sections and Rules under GST law to protect the Government revenue and facilitates to the taxpayers to carry out day-to-day statutory compliances to run their business. The words ‘proper officer’ used in various parts of the GST law scattered through different provisions therein needs specific assignment to be performed under different sections of the statute to serve respective purpose of the relevant sections and rules made thereunder:
Section 2(91) of the CGST Act, 2017 defines “proper officer” in relation to any function to be performed under this Act, means the Commissioner or the officer of the Central tax who is assigned that function by the Commissioner in the Board.
C.B. & C, vide its Circular 1/1/2017-GST dated 26-Jun-2017[2017(2) G.S.T.L.45] has assigned powers of ‘Proper Officer’ for Registration and Composition levy under the CGST Act, 2017 or the Rules made thereunder to specified officers. The Board, hereby assigns the officers mentioned in Column (2) of the Table below, the functions as the proper officers in relation to the various sections of the said Act or the rules made thereunder mentioned in the corresponding entry in Column (3) of the said Table :-
TABLE
| Serial
Number |
Designation of the Officer | Functions under Section of the Central Goods and Services Tax Act,2017 or the rules made thereunder |
| (1) | (2) | (3) |
| 1. | Assistant or Deputy Commissioners of Central Tax and Assistant or Deputy Directors of Central Tax | i. Sub-section (5) of Section 10- composition levy, determination of tax liability in case not being eligible.
ii. Proviso to Sub-section (1) of Section 27- issue of certificate to casual and non-resident taxable person. iii. Section 30- Revocation of cancellation of registration. iv. Rule 6- Validity of composition levy. v. Rule 23-Revocation of cancellation of registration. vi. Rule 25- Physical verification of business premises in certain cases. |
| 2. | Superintendent of Central Tax | i. Sub-section (8) of Section 25- Action taken against person who fails to obtain registration.
ii. Section 28- Amendment of registration. iii. Section 29- Cancellation of registration. iv. Rule 9- Verification of application for registration. v. Rule 10- Issue of registration certificate. vi. Rule 12-Grant of registration to persons required to deduct TDS or TCS. vii. Rule 16- Suo moto registration viii. Rule 17- Assignment of UIN to certain special entities. ix. Rule 19- Amendment of registration. x. Rule 22- Cancellation of registration. xi. Rule 24- Migration of persons registered. |
Further, C.B.I. & C, vide its Circular 3/3/2017-GST dated 5-Jul-2017 [2017(2) G.S.T.L. 314], has assigned the proper officer relating to provisions other than Registration and Composition under CGST Act. The Board , hereby assigns the officers mentioned in Column (2) of the Table below, the functions as the proper officers in relation to the various sections of the Central Goods and Services Tax Act,2017 or the rules made thereunder given in the corresponding entry in Column (3) of the said Table:-
TABLE
| Sl. No | Designation of the officer | Functions under Section of the Central Goods and Services Tax Act,2017 or the rules made thereunder |
| (1) | (2) | (3) |
|
|
Principal Commissioner / Commissioner of Central Tax | i. Sub-section (7) of Section 67 –Extension of another six months to issue notice after seizure of goods.
ii. Proviso to Section 78- Extension for another 3 months under recovery of proceedings. |
|
|
Additional or Joint Commissioner of Central Tax | i. Sub-sections (1), (2), (5) and (9) of Section-67- Inspection, search, seizure and inventory of goods.
ii. Sub-section (1) and (2) of Section 71- Power to summon persons to give evidence and produce documents. iii. Proviso to section 81-Transfer of property to be void in certain cases. iv. Proviso to sub-section (6) of Section 129-Detention, seizure and release of goods and conveyance in transit. v. Sub-rules (1), (2), (3) and (4) of Rule 139-Inspection, search and seizure. vi. Sub-rule (2) of Rule 140- Encashment of security in case person fails to produce goods at the appointed date. |
| 3. | Deputy or Assistant Commissioner of Central Tax | i. Sub-sections (5), (6), (7) and (10) of Section 54-Refund of tax and appropriation of refund against outstanding dues.
ii. Sub-sections (1), (2) and (3) of Section 60-Provisional assessment / final assessment. iii. Section 63- Assessment of unregistered person. iv. Sub-section (1) of Section 64- Issue assessment order in certain person. v. Sub-section (6) of Section 65- Intimation of tax audit findings to the registered person. vi. Sub-sections (1), (2), (3), (5), (6), (7), (9), (10) of Section 74 – Determination of tax liability within three years from the due date for furnishing of annual return for the financial to which tax not paid and input tax credit wrongly availed or utilised or erroneous refund. vii. Sub-sections (2), (3), (6) and (8) of Section 76- Recovery of tax collected but not paid to the Government. viii. Sub-section (1) of Section 79- Recovery of tax not paid. ix. Section 123- Recovery of penalty for failure to furnish information return. x. Section 127- Power to impose penalty in certain cases. xi. Sub-section (3) of Section 129- Issue of notice seizing goods or conveyance and pass an order for payment. xii. Sub-sections (6) and (7) of Section 130-Confiscation of goods or conveyance and levy penalty. xiii. Sub-section (1) of Section 142- Transitional provisions for refund of the duty paid goods in case of returned of goods within six months. xiv. Sub-rule (2) of Rule 82- Issue of details of inward supplies of goods in FORM GSTR-11. xv. Sub-rule (4) of Rule 86- Issue of an order in FORM GST PMT-03 for re-credit to the electronic credit ledger in case of refund rejected. xvi. Explanation to Rule 86- Refund shall be deemed to be rejected if not filed appeal. xvii. Sub-rule (11) of Rule 87- Extent of refund shall be credited to the electronic cash ledger by an order in FORM GST PMT-03. xviii. Explanation 2 to Rule 87- Refund shall be deemed to be rejected if not filed appeal. xix. Sub-rules (2) and (3) of Rule 90- Acknowledgement of refund in FORM GST RFD-02, Deficiency of refund communication in FORM GST RFD-03 xx. Sub-rules (2) and (3) of Rule 91- Issue provisional sanction refund order in FORM GST RFD-04 and payment advice in FORM GST RFD-05 under section 54 xxi. Sub-rules (1), (2), (3), (4) and (5) of Rule 92- Final refund sanction order in FORM GST RFD-06, xxii. Explanation to Rule 93- Refund shall be deemed to be rejected if not filed appeal. xxiii. Rule 94- Order sanctioning interest on delayed refunds along with advice in FORM GST RFD-05 xxiv. Sub-rule (6) of Rule 96- Refund of integrated tax paid on goods exported out of India and pass an order in Part B of FORM GST RFD-07 xxv. Sub-rule (2) of Rule 97- Amount credited to consumer welfare fund shall be payable to claimant. xxvi. Sub-rule (2),(3),(4),(5) and (7) of Rule 98- For provisional and finalization of assessment. xxvii. Sub-rule(2) of Rule 100- Assessment to be made on best judgement basis and pass order in FORM GST ASMT-16 xxviii. Sub-rules(2),(3),(4) and (5) of Rule 101- Audit, issue of notice in FORM GST ADT-01 and inform findings in FORM GST ADT-02 as per provisions of sub-section (6) of section 65. xxix. Rule 143- Recovery by deduction from any money owed, require information in FORM GST DRC-09. xxx. Sub-rules (1), (3), (4), (5), (6) and (7) of Rule 144- Recovery by sale of goods under the control of proper officer. xxxi. Sub-rules (1) and (2) of Rules 145- Recovery from third person and issue notice in FORM GST DRC-13 xxxii. Rule 146- Recovery through execution of a decree and send request in FORM GST DRC-15. xxxiii. Sub-rules (1),(2), (3), (4), (5), (6), (7), (8), (10), (11), (12), (14) and (15) of Rule 147- Recovery by sale of movable or immovable property. xxxiv. Sub-rules (1), (2) and (3) of Rule 151- Attachment of debts and shares by a written order in FORM DRC-16. xxxv. Rule 152- Attachment of property in custody of courts or public officer. xxxvi. Rule 153- Attachment of interest in partnership. xxxvii. Rule 155- Recovery through land revenue authority. xxxviii. Rule 156- Recovery through court. |
| 4. | Superintendent of Central Tax | i. Sub-section (6) of Section 35- where registered person fails to account for the goods or services or both and determine such tax in terms of provisions of section 73 or section 74.
ii. Sub-sections (1) and (3) of Section 61- Scrutiny of returns and determination of tax in terms of provisions of section 73 or section 74. iii. Sub-section (1) of Section 62- Assessment of non-filers of returns. iv. Sub-section (7) of Section 65- Audit by tax authorities and initiate action in terms of section 73 or section 74. v. Sub-section (6) of Section 66- Special Audit and initiate action in terms of section 73 or section 74. vi. Sub-section (11) of Section 67-Prosecution for evade the payment of tax by registered person. vii. Sub-section (1) of section 70- Power to summon persons to give evidence and produce documents. viii. Sub-sections (1), (2), (3),(5),(6),(7),(9) and (10) of Section 73- Determination of tax not paid , short paid, erroneously refunded, wrongly availed or utilised initiate action under section 73. ix. Sub-rule (6) of Rule 56- Determination of tax stored goods without cover of documents. x. Sub-rules (1), (2) and (3) of Rule 99- Scrutiny of returns. xi. Sub-rule (1) of Rule 132- Power to summon person to give evidence and produce documents. xii. Sub-rule (1), (2), (3) and (7) of Rule 142- issue notice in FORM GST DRC-01 and issue order in FORM GST DRC-08 for recovery. xiii. Rule 150- Seek assistance from police officer in-charge of jurisdiction. |
| 5. | Inspector of Central Tax | i. Sub-section (3) of Section 68- Inspection of goods in movement and interception of conveyance to produce documents for verification.
ii. Sub-rule (17) of Rule 56- Produce accounts and records for verification of goods custody of any person. iii. Sub-rule (5) of Rule 58- Physical verification of godown. |
The Board vide circular No. 31/05/2018 dated 9’th February’2018 wherein decided that Superintendent of Central Tax shall also be empowered to issue show cause notices and orders under Section 74 of the CGST Act. Accordingly, the following entry is hereby being added to the item at Sl. No. 4 of the Table on page number 3 of Circular No. 3/3/2017-GST, dated 5th July, 2017, namely :-
| Sl. No. | Designation of the officer | Functions under Section of the Central Goods and Services Tax Act, 2017 or the rules made thereunder |
| (1) | (2) | (3) |
| 4 | Superintendent Central Tax | Viii (a). Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Section 74- determination of tax. |
Further, Board vide its Circular No. 31/05/2018-GST dated 9th February’2018 has removed from the Table at Sl. No. vi. Sub-section (1), (2), (3), (5), (6), (7), (9) and (10) of Section 74 where assigns power vide circular No. 3/3/2017-GST dated 5th July, 2017. The following entry hereby removed vide Circular No. 3/3/2017-GST dated 5th July, 2017.
| Sl. No. | Designation of the officer | Functions under Section of the Central Goods and Services Tax Act, 2017 or the rules made thereunder |
| (1) | (2) | (3) |
| 3 | Deputy or Assistant Commissioner of Central Tax | Vi. Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Section 74- determination of tax. |
With the above Changes, all officers up to the rank of Additional / Joint Commissioner of Central Tax are assigned as the proper officer for issuance of show cause notices and orders under sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Section 73 and 74 of the CGST Act. Further, they are so assigned under the Integrated Goods and Services Tax Act, 2017 as well, as per Section 3 read with Section 20 of the said Act.
Conclusion: Thus, the proper has been assigned different roles under GST Law to facilitate and extend cooperation to the taxpayers for their day-to-day statutory compliance. The proper officer sometimes perform as an administrative, adjudicating and quasi-judiciary authority to protect the Government revenue. In the recent judgement the Hon’ble High Court of Telangana in the Case of P.V.Ramana Reddy v. UOI- reported in 2019(25) G.S.T.L.185( Telangana), held that “ the arrested person should be produced by the authorized officer before the Magistrate within 24 hours who may either remand him to judicial custody or release him on bail. The question of giving such person to police custody or custody to proper officer does not arise. The contention that the proper officer not being a police officer could not seek custody of arrested person, was held to be not tenable.” This view was approved by the Apex Court reported in 2019(26) G.S.T.L.j175 (S.C.).
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