Superintendent's Tax Credit Order Overturned: Monetary Jurisdiction Breach Invalidates Circular Under Section 73 of CGST Act

HC found the Superintendent's order u/s 73 of CGST Act exceeded prescribed monetary jurisdiction of Rs. 10,00,000 per circular. The impugned order disallowing input tax credit was set aside, with liberty granted to respondents to proceed afresh within legal limits.

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Issues involved:
The jurisdiction of the Superintendent u/s 73 of CGST Act challenged based on a circular issued by the Government of India, Ministry of Finance, Department of Revenue.

Jurisdiction Challenge:
The petitioner challenged an order passed by the Superintendent u/s 73 of the Central Goods and Services Tax Act, 2017, disallowing ITC for an amount exceeding Rs. 16,00,000. The challenge was based on the circular dated 9.2.2018, which limited the power of the Superintendent to matters not exceeding Rs. 10,00,000. The respondent conceded that the impugned order was not proper as it exceeded the monetary limit set by the circular. Consequently, the High Court found the order to be without jurisdiction and set it aside, granting liberty to the respondents to proceed afresh in accordance with the law. The writ petition was allowed.

Conclusion:
The High Court, in a case challenging the jurisdiction of the Superintendent u/s 73 of the CGST Act, found the impugned order to be without jurisdiction as it exceeded the monetary limit set by a circular issued by the Government of India, Ministry of Finance, Department of Revenue. The order disallowing ITC for an amount exceeding Rs. 16,00,000 was set aside, and the respondents were granted liberty to proceed afresh in accordance with the law.

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