Jurisdictional Validity of GST Show Cause Notices Issued by Assistant Commissioner of Revenue: Calcutta High Court Ruling
The Calcutta High Court recently adjudicated a significant matter concerning the competence of specific officers to initiate proceedings under the Goods and Services Tax framework. In the case of Poulami Ghoshal Vs Assistant Commissioner of Revenue, the Court examined whether an officer designated as an "Assistant Commissioner of Revenue" holds the requisite jurisdiction to issue a Show Cause Notice (SCN) under Section 74 of the CGST/WBGST Act, 2017, or if such powers are strictly reserved for an "Assistant Commissioner of State Tax."
Case Background and The Dispute
The writ petition was filed by the assessee challenging a Show Cause Notice dated 19 July 2024. This notice was issued invoking the provisions of Section 74 of the CGST/WBGST Act, 2017 covering the tax period of 2023–24 (specifically up to February 2024).
The core legal question raised by the assessee was not regarding the merits of the tax demand, but rather the fundamental jurisdiction of the issuing authority. The legal counsel for the assessee argued that the statutory scheme requires proceedings under Section 74 to be initiated solely by the "proper officer."