The Telangana High Court has held that the appellate authority deciding GST appeal is competent to decide the question of officer’s jurisdiction.

The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that under Section 107 of the GST Act, appellate authority is not competent to decide the question of jurisdiction of officers, who have issued the impugned notice and Order. In view of statutory remedy available to the petitioner, the petitioner is relegated to avail the remedy. In the interest of justice, it is observed that if petitioner raises the issue of jurisdiction in its appeal memo, it will be lawful for the appellate authority to decide the issue in accordance with law.

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Background

The petitioner/assessee has received a show-cause notice issued by the GST department. Although the petitioner filed a reply, he did not raise an objection regarding jurisdiction of the authority who has issued the notice. 

The petitioner submitted that its registration is at Gachibowli GST Division, which is at Ranga Reddy District. The officer did not have jurisdiction to issue the show-cause notice. Thus, Order founded upon show-cause notice, is bad in law. 

Although petitioner has a statutory remedy of filing appeal under Section 107 of the Central Goods and Service Tax Act, 2017, the appellate authority will not be able to decide the question of jurisdiction of the authority who has issued the notice and passed the Order-in-Original.

The department contended that show-cause notice and the Order-in-Original were issued by the competent authorities and the petitioner has a remedy of appeal.

Conclusion

The court noted that the point raised by the petitioner regarding jurisdiction is not a pure question of law. Instead, it is a mixed question of fact and law. Thus, the appellate authority is best suited to decide the question. 

Case Title: M/s. Jain Housing and Constructions Limited vs Additional Commissioner

Case No.:  WP/24412/2024

Date:  05-09-2024

Counsel For Petitioner: K. Govinda Rao

Counsel For Respondent: Dominic Fernandes

Read Order