State GST Officers has Power to Inspect, Search and Seize Goods under IGST Act: Madhya Pradesh HC [Read Order]

State GST Officers - Taxscan

A two-judge bench of the Madhya Pradesh High Court has held that the State GST Officers are also authorized to exercise the powers to inspect, search, and seize the goods under the Integrated Goods and Services Tax (IGST) Act, 2017.

In the instant case, the petitioners were transporting goods for an inter-state supply of goods from Gurgaon, Haryana to Pune, Maharashtra. As per the E-Way Bill System, the number of the vehicle was mentioned as HR-38-0823 whereas, the correct vehicle number is HR-38-X-0823. The department, by finding that the E-Way Bill was defective and not updated, initiated proceedings against the petitioners.

According to the petitioner, M. P. State Government or officials authorized under the MPGST Act, 2017 have no jurisdiction to exercise the powers under the Integrated Goods and Services Act, 2017, particularly under Section 4 of the IGST Act, 2017.

The petitioners contended that there is no separate notification authorizing officials of the State Government under the IGST Act to exercise powers under the IGST Act, 2017. According to them, in the absence of any notification under Section 4 of IGST Act, 2017, the respondent No.4 is not competent to issue show cause notice and the impugned seizure memo dated 15.07.2018 is wholly without jurisdiction.

The bench comprising Justices P. K. Jaiswal and S. K. Awasthi, after analyzing the provisions of section 4 of the IGST Act, the bench said that the officers appointed under the MPGST Act, 2017 was authorized to be proper officers for the purposes of the IGST Act.

“On due consideration of the arguments of the learned counsel for the parties so also the provisions of Section 4 of the IGST Act, we are of the view that officers appointed under the MPGST Act are authorized to be proper officers for the purpose of IGST and, therefore, the contention of the petitioner that no notification was issued and in absence of any notification under Section 4 of the IGST Act has no force, we cannot accept the contention of the petitioner that the action of the respondent No.4 is wholly without jurisdiction,” the bench said.

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