Madras High Court Upholds GST Cross-Empowerment: No Separate Notification Required Under Section 6

The jurisdictional boundaries between Central and State tax authorities have been a subject of intense litigation since the inception of the Goods and Services Tax (GST) regime. A recurring dispute revolves around whether an officer from one tax administration can initiate proceedings against an assessee administratively assigned to the other. In a significant judicial development, the Madras High Court, in the case of State Tax Officer Vs Sree Amman Traders, has provided definitive clarity on this issue.

Disposing of a batch of 22 writ appeals (including WA No. 687 of 2026) via an order dated 24/09/2026, the Division Bench ruled that the power of cross-empowerment is inherent in the statute and does not remain suspended pending a specific government notification.

Background of the Dispute

The controversy originated when several assessees challenged summons and assessment proceedings initiated by tax authorities to whom they were not administratively assigned. The core argument presented by the assessees was that cross-empowerment under the GST framework could only be activated if the Government issued a specific notification under Section 6 of the Central Goods and Services Tax Act, 2017 (CGST Act).

Agreeing with this interpretation, a writ court had previously passed a common order on 11.03.2024, quashing the impugned summons and assessment proceedings. The writ court held that in the absence of a formal notification operationalizing Section 6, officers lacked the jurisdictional authority to cross-empower themselves and investigate assessees assigned to the counterpart administration.

Aggrieved by this decision, both State GST Authorities (filing 16 appeals) and Central GST Authorities (filing 6 appeals) approached the Division Bench of the Madras High Court.

The Supreme Court Precedent: Armour Security Guidelines

While adjudicating the appeals, the Madras High Court heavily relied upon the landmark Supreme Court judgment in Armour Security (India) Ltd. Vs Commissioner, CGST, Delhi East Commissionerate & Another (2025 INSC 982). The Apex Court in that instance had comprehensively examined the GST scheme, starting from self-assessment under Section 59, and established clear boundaries for cross-empowerment.