Allahabad High Court: When An Order Is Passed Under The IGST Act, The Appeal Shall Lie Before The Central Tax Officer

Allahabad High Court: When An Order Is Passed Under The IGST Act, The Appeal Shall Lie Before The Central Tax Officer

Justice Anish Kumar Gupta and Justice Saumitra Dayal Singh of the Allahabad High Court have held that when an order is passed under the IGST Act, the appeal shall lie before the Central Tax Officer.

The Court noted that Section 6(3) of the UPGST Act, 2017, explicitly limits the authority of Central Tax Officers to hear appeals regarding orders issued by officers appointed under the UPGST Act. Consequently, Central Tax Officers lack jurisdiction to entertain appeals concerning orders made by officers appointed under the UPGST Act, 2017.

The Court admitted the writ petition and observed that the IGST Act does not include provisions for appeals against an order issued by the state GST Officer.

The petitioner/assessee – a proprietorship firm and supplier of areca nuts whose goods were detained by the UPGST officer challenged the penalty order passed by the UPGST Mobile Squad Officer under Section 129(3) of the CGST Act read with Section 20 of the IGST Act on the ground that no alternate remedy is provided.

The petitioner argued that Section 3 of the IGST Act designates “Central Tax Officers” to carry out duties under the IGST Act. Additionally, according to Section 4 of the IGST Act, 2017, officers appointed under the State GST Act (UPGST) are authorized to act as proper officers under this Act.

Furthermore, the petitioner contended that the Appellate Authority appointed under the UPGST Act, 2017, lacks jurisdiction to hear appeals against orders issued under the IGST Act, 2017. This is because Section 107 of the UPGST Act, 2017, explicitly prohibits the UPGST Authority from entertaining appeals against orders made under the IGST Act, 2017.

The Court granted the department four weeks to file a counter affidavit.