Monetary Limit for adjudicting authority

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

One of my clients has received an order under section 73 of GST Act from the Dy. State Tax Officer for excess availment of Input Tax Credit to the tune of Rs.2.80 Crores.

My question is whether this assessing officer has the jurisdiction to pass an order? if yes what is the monetary limit given to the Dy. State Tax Officer under the state government.

Thanks in advance.

[Himansu Sekhar]

sir,

you have not mentioned the name of the state. The monetary limit fixed by CGST is by way of circular or instructions.

in Odisha no monetary limit has been fixed for the state tax officers. Any officer can pass the order without any monerary limit.

further even if the monetary limit is fixed, the scn issued by lower level authorities will not be infructuos. Please refer to tye decision of Hon'ble SC in the case of Pahwa chemicals and Aoen constructions

[Amit Agrawal]

You need to check orders / notifications issued by Commissioner of particular states empowering proper officers to know you answer.

In addition of looking for technicalities (generally speaking, officer will not pass order if amount involved exceeds his specified monetary limits (if any) to adjudicate), I would also suggest to defend the case on merits.

[Alkesh Jani]

Hon'ble Experts,

The views expressed here are also important for Issue Id: - 117986.

Thanks

[KASTURI SETHI]

In support of reply at serial no.1

2005 (4) TMI 68 - SUPREME COURT AEON’S CONSTRUCTION PRODUCTS LTD. Versus COMMR. OF C. EX., CHENNAI

[Himansu Sekhar]

Thank you sir. there has been spelling mistake in my reply since I posted it while on journey

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

Thanks for your valuable reply. I forgot to mention the state. It belongs to Tamil Nadu and later I checked the notification issued by the commissioner of Commercial Tax, there is no monetary limit fixed for the Proper Officer. Therefore, all the proper officers can pass an order irrespective of the amount involved.

Thanks once again to explain the same.

AI Summary

Monetary limit for adjudicating authority: verify state notifications; absence permits officers to adjudicate regardless of amount. Delegated monetary limits for GST adjudication depend on state Commissioner notifications; where no monetary limit is fixed any properly empowered state tax officer may pass orders irrespective of amount, but practitioners should verify the specific state notification and consider defending the case on merits.