Asst Commissioner ignored Direction in Appellate Order: P&H HC directs Commissioner to Take Strict Action against Insubordination In CGST Hierarchy [Read Order]
It was found that the Assistant Commissioner overstepped his authority despite the Joint Commissioner's directive to consider it on merits
Punjab and Haryana High Court – CGST – Commissioner to Take Strict Action – Taxscan
Punjab and Haryana High Court – CGST – Commissioner to Take Strict Action – Taxscan
In a significant case, the Punjab and Haryana High Court directed to take strict action against insubordination in the Central Goods and Service Tax (CGST) hierarchy as the Asst Commissioner ignored the direction to hear the case on merits. It was found that the Assistant Commissioner overstepped his authority despite the Joint Commissioner's directive to consider it on merits.
Proxima Steel Forge Pvt. Ltd , the assessee/petitioner filed a refund application, but it was rejected by the Assistant Commissioner because it was submitted after the two-year time limit set by the Circular dated 20.07.2021. The assessee filed an appeal, which was conditionally allowed by the Joint Commissioner. The Assistant Commissioner, Sewa Ram, reconsidered the application and stated that he had sent a letter to the Joint Commissioner, seeking clarification.
The Joint Commissioner rejected the request, stating it was outside the scope of Section 161 of the CGST Act. Despite this, the Assistant Commissioner again rejected the refund application on 24.01.2024, citing it as time barred. The assessee has filed a petition before the High Court of Punjab and Haryana challenging the order passed by the Assistant Commissioner.
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It was viewed that the Assistant Commissioner seems to be asserting his authority over and above the order passed in appeal by the Joint Commissioner, who has already observed that the application has to be treated within time and has to be decided on merits.
The single bench of Justice Sanjeev Prakash Sharma observed that the Assistant Commissioner, a subordinate officer, has refused to examine the case on merits and again dismissed the application as time barred. Such an approach is the result of the virtual failure of the system of hierarchy in the CGST.
Section 161 of the CGST Act, 2017 deals with rectification of mistakes or errors apparent from record. It provides that the authority who has issued any decision, order, summon, notice or any certificate may rectify any mistake apparent from record in such documents.
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The bench observed that the Assistant Commissioner, a subordinate officer has refused to examine the case on merits and again dismissed the application as time barred. Such an approach adopted by the subordinate officer is the result of the virtual failure of system of hierarchy in the CGST.
The court set aside the order passed by the Assistant Commissioner and directed the Commissioner to appoint another officer to deal with the refund application of the assessee. J.S. Bedi appeared for the petitioner and Ajay Kalra appeared for the respondent.
To Read the full text of the Order CLICK HERE
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