2020 (4) TMI 629

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....this writ petition has been preferred. 2. Learned Counsel for the petitioner has advanced solitary contention emphasizing the jurisdiction of the 1st respondent, who passed the order of Prohibition as contemplated under Section 67(2) of the Central Goods and Services Tax Act, 2017 (hereinafter be called as "CGST"). It is urged that the authority competent to pass the order should not be below the rank of Joint Commissioner while the order impugned has been passed by the Deputy Assistant Commissioner, who is not competent to pass the order of Prohibition, therefore, the order of prohibition so passed confiscating the goods is unsustainable in law. 3. On the other hand, learned Government Pleader for Commercial Tax appearing on behalf o....

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....s made thereunder to evade tax under this Act; or (b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, he may authorise in writing any other officer of central tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place. (2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-se....

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....ave escaped in such a manner a godown or any other place is keeping goods, payment of tax or has kept his accounts or goods as is likely to cause evasion of tax, in that contingency, he may authorise any other officer of Central Tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown as the case may be. Meaning thereby, under sub-Section (1) of Section 67 of the Act, competent officer is the joint commissioner, but in case, he has reasons to believe of the aforesaid facts, he may authorize any person in writing or any other officer of the Central Tax to inspect. As per Section 67(2) of the Act, it is clear that an officer, no....

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....(1) of the Act, in respect of the search including the inspection, written authorization is required. It is conspicuously missing in the present case. Therefore, the order of prohibition passed by the 1 st respondent is illegal and without any jurisdiction. 8. After perusal of the provisions of the Act, we find much substance in the argument of the learned Counsel for the petitioner. As per the provisions of Section 67(1) of the Act, power of inspection is specified to an officer not below the rank of joint commissioner. The said officer for the purpose of search as specified in Section 67(1) (a) and (b) may authorize in writing any other officer of Central Tax for inspection of any places of business of the taxable person or the persons....