Tag: cross empowerment

ArticleGST Article

Cross-Empowerment under Section 6 of the CGST Act is Automatic and Intelligence-Based Enforcement is valid regardless of Taxpayer Assignment

byCA Bimal Jain

The Hon’ble High Court of Jammu and Kashmir and Ladakh in the case of in R.K. Ispat Ltd. held that cross-empowerment under Section 6 of the CGST Act is automatic and does not require a separate government notification unless conditions are imposed; intelligence-based enforcement actions can be initiated by either Central or State authorities regardless of taxpayer assignment; the Joint Commissioner is competent to issue show cause notices even when amounts involved are below Rs. 1 crore; and bunching of show cause notices across multiple assessment years under Section 74 is not expressly prohibited.

GST ArticleHigh Court

State-Tax Officers authorised can act as ‘proper-officer’ for IGST Act

byCA Bimal Jain

The Hon’ble Orissa High Court in the case of Narayan Sahu held that officers of State Tax are authorized to be Proper Officers as per Section 4 of the IGST Act. The officers of State Tax are authorized to be proper officers under IGST Act subject to exceptions and conditions to be notified by the Government. Noting that there was no notification to limit the State Tax authorities to cross-authorize on IGST matters, dismisses the petition accordingly and upholds the order

GST ArticleHigh Court

Assessee cannot be adjudicated by the CGST, assigned to SGST authority or vice-versa

byCA Bimal Jain

The Hon’ble Madras High Court in Ram Agencies v. Assistant Commissioner of Central Tax has quashed the impugned order-in-original issued by the Assistant Commissioner of Central Taxes as it was held that in absence of a notification issued for cross empowerment, authorities from counterpart department cannot initiate proceedings where an assessee is assigned to other counterpart.