Proper officer requirement under GST notice powers: interim stay granted subject to partial deposit pending pleadings

A writ challenge questioned whether a Superintendent of Central GST was a proper officer to issue a show cause notice under Section 79 of the CGST Act, with reliance on Circular No. 3/3/2017-GST indicating that the power was exercisable by a Deputy or Assistant Commissioner of Central Tax. The High Court granted interim stay of the impugned notice pending pleadings, while allowing time for counter affidavit and rejoinder and directing relisting after six weeks. The stay was made conditional on deposit of 75% of the demanded amount within three weeks, and the stay application was disposed of.

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Issues: Whether the impugned show cause notice was issued by a proper officer competent to exercise power under Section 79 of the Central Goods and Services Tax Act, 2017, and whether interim protection was warranted pending filing of pleadings.

Analysis: The writ petition was entertained on the challenge to the competence of the Superintendent, Central Goods and Service Tax, to issue the notice, with reliance placed on Circular No. 3/3/2017-GST dated 05.07.2017 stating that only the Deputy or Assistant Commissioner of Central Tax would be the proper officer for exercising power under Section 79. The respondents were granted time to file a counter affidavit and rejoinder, and the matter was directed to be listed after six weeks.

Outcome: Interim stay of the impugned notice was granted, subject to deposit of 75% of the demanded amount within three weeks, and the stay application was disposed of.

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