Allahabad High Court: GST & CE Superintendent has no Jurisdiction to Pass Order Exceeding Rs 10 Lakh

GST & CE Superintendent has no Jurisdiction to pass Order Exceeding Rs 10 Lakh: Allahabad High Court

In a significant ruling, in case of M/s. Mansoori Enterprises (Writ Tax No. 35/ 2024), the Lucknow bench of the Allahabad High Court has quashed an order by the GST and Central Excise Superintendent, citing jurisdictional limits. The decision by Justice Alok Mathur of Allahabad High Court emphasizes adherence to a circular issued on February 9, 2018, by the Government of India, Ministry of Finance, and Department of Revenue. According to this circular, the authority of the Superintendent, Central Goods and Service Tax, and Central Excise extends only to cases involving amounts up to Rs. 10,00,000.

In the case under consideration, the amount in question exceeded Rs. 16,00,000, rendering the Superintendent’s order beyond their prescribed jurisdiction. The applicant challenged this order in Allahabad High Court under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act), arguing that it contravened the 2018 circular’s limitations.

The petitioner contended that the Superintendent, Central Goods and Service Tax, and Central Excise lacked the jurisdiction to issue such an order, pointing to the February 9, 2018 circular by the Government of India, Ministry of Finance, and Department of Revenue. This circular had allocated jurisdiction to various officials based on the maximum amounts of central tax discrepancies.

The department defended its order, stating that it was not duly passed by the designated officer as per Circular No. 31/05/2018-GST, which set the monetary limit at Rs. 10 lakhs for both central and state taxes. Consequently, the court ruled the order to be without jurisdiction and set it aside.

The respondent department was granted the liberty by the court to proceed afresh in accordance with the law.

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