GST Appellate Authority competent by Law to Decide Question of Jurisdiction of GST Order: Telangana HC [Read Order]

In a significant ruling, the Telangana High Court has held that the appellate authority is competent to decide questions of jurisdiction against GST orders.

The decision was rendered in the context of a writ petition challenging a show-cause notice and the subsequent Order-in-Original issued by the GST authorities. The petitioner contended that the officer who issued the notice lacked the necessary jurisdiction, rendering the order invalid.

The petitioner, represented by counsel K. Govinda Rao, argued that although a statutory appeal could be filed under Section 107 of the Central Goods and Services Tax ( CGST ) Act, 2017, the appellate authority would not have the competence to decide the question of jurisdiction.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

The petitioner’s registration was with the Gachibowli GST Division, Ranga Reddy District, and the officer issuing the notice was allegedly not authorised to do so, which raised the question of jurisdiction. The petitioner sought relief from the High Court on the grounds that the notice and the order were issued by an incompetent authority.

Dominic Fernandes, Senior Standing Counsel for the CBIC, countered the petitioner’s claims, asserting that the show-cause notice and the Order-in-Original were valid and issued by a competent officer.

He further argued that the petitioner had a clear statutory remedy under Section 107 of the CGST Act, which allows for an appeal against such orders, including questions related to jurisdiction.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

The court, presided over by Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao, addressed the primary contention of the petitioner concerning the jurisdictional competence of the officer. The court noted that the issue of jurisdiction was not a purely legal question but rather a mixed question of fact and law. This distinction is important because, as the court observed, matters that involve both fact and law are best suited to be decided by the appellate authority established under the statutory framework.

The court further clarified that under Section 107 of the CGST Act, the appellate authority does indeed have the jurisdiction to decide questions concerning the authority of officers who have issued orders. The court declined to intervene directly, directing the petitioner to avail the statutory remedy of filing an appeal, where the question of jurisdiction could be raised and adjudicated upon.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

In disposing of the writ petition, the Telangana High Court underlined the importance of utilising the statutory remedy available under the CGST Act. It observed that the appellate authority, upon appeal, would be competent to decide the issue of jurisdiction in accordance with the law. The court also provided a reprieve by stating that the time spent in pursuing the writ petition would not be counted towards the limitation period for filing the appeal.

Thus, the court upheld the principle that the appellate authority is the appropriate judicial forum to decide jurisdictional issues under GST law.

To Read the full text of the Order CLICK HERE

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