GST | Separate Notification Needed For Cross-Empowerment Of State Officials? Kerala High Court Refers To Division Bench

A single bench of the Kerala High Court has referred to the division bench the issue relating to the cross-empowerment of State officials under Section 6(1) of the Goods and Services Act.

Justice P Gopinath passed the reference order in a writ petition filed by a company challenging a show-cause notice issued by the State authorities. 

The petitioner argued that without a specific notification under Section 6(1) of the GST Act, the State authorities are not empowered to exercise the powers under the GST Act. Reliance was placed on the Madras High Court's judgment in Tvl. Vardhan Infrastructure v. Special Secretary, Head of the GST Council Secretariat.

Justice Gopinath however prima facie expressed disagreement with the Madras High Court's view. The single judge observed that only when any restriction or condition has to be placed on the exercise of power by any officer appointed under the State Goods and Services Tax Act that a notification as contemplated by the provisions of Section 6(1) of the CGST Act has to be issued. The judge also observed that the show-cause notice cannot be interefered with only on this sole ground.

At the same time, having regard to the fact that the issue will affect several proceedings, the judge chose to refer the mater to the division bench.

"Since the issue raised in this writ petition will affect several proceedings, and taking note of the view expressed by the Madras High Court in Tvl. Vardhan Infrastructure (Supra), which is contrary to the prima facie view that I have taken, I am of the opinion that this issue requires an authoritative pronouncement by a Division Bench of this Court," the single judge stated.

Advocate Ammu Charles appeared for the petitioner.

Advocate J Vishnu appeared for the GST Council.

Case : Pinnacle Vehicles and Services Pvt Ltd v. Joint Commissioner

Click here to read the order