Jurisdiction to adjudicate all connected SCNs lies with the Commissionerate that issues the SCN with the highest demand

The Delhi High Court has ruled that when multiple GST Show Cause Notices (SCNs) are issued, the Commissionerate that issued the SCN with the highest demand has the jurisdiction to adjudicate all connected notices. This decision clarifies that the officer with jurisdiction over the notice involving the maximum demand is the one responsible for adjudication, even if other notices were issued by different authorities.

The Hon'ble Delhi High Court in the case ofAasanvish technology (P.) Ltd v. Director General of GST Intelligence [Writ Petition No. (C) 15221 of 2023 dated November 24, 2023] held that the matter for adjudication can be placed before an officer who exercises jurisdiction in respect of the Noticees, where multiple notices have been issued, in whose case the maximum demand has been raised. Thus, disposed of the writ petition.

Facts

Aasanvish Technology (P.) Ltd. ("the Petitioner") was engaged in providing services of online gaming. They were issued multiple SCN ("Impugned SCN") dated September 15, 2023. The liability was charged for the period when the Petitioner was not active. The Petitioner did not have any wherewithal to provide any such service.

The Impugned SCN was issued by the Additional Directorate General of GST Intelligence, Delhi Zonal Unit. The Petitioner contended that the Impugned SCN was to be adjudicated by the Additional/Joint Commissioner of Central Tax, Thane and the Impugned SCN related to the Petitioner's place of business at Hyderabad, Telangana with separate registration. 

The Director General of GST Intelligence ("the Respondent") referred Para 7.1 of Circular dated September 2, 2018, amended by Circular dated March 12, 2022, the matter for adjudication can be placed before an officer, who exercises jurisdiction in respect of the noticee (where multiple notices have been issued), in whose case the maximum demand has been raised. He stated that in the present case, multiple notices have been issued and the maximum demand is proposed to be raised under the notice issued to Belz Tech Private Limited. Therefore, the Additional/Joint Commissioner of Central Tax, Thane would have jurisdiction to adjudicate the said notice.

Hence, aggrieved by the Impugned Notice the present writ was filed by the Petitioner.

Issue

Whether the matter for adjudication can be referred to the officer with jurisdiction,where multiple notices are involved, and the maximum demand has been raised?

Held

The Delhi High Court in W.P. (C) No. 15221 of 2023 held as under:

• Held that, Para 7.1 of Circular dated September 2, 2018, amended by Circular dated March 12, 2022, would be applicable where the matter for adjudication can be placed before an officer, who exercises jurisdiction where maximum demand has been raised. Therefore, the Additional/Joint Commissioner of Central Tax, Thane would have jurisdiction to adjudicate the said notice. 
• Held that, the Petitioner's contention that the Additional/Joint Commissioner of Central Tax, Thane would have no jurisdiction to adjudicate the impugned SCN is, thus, unmerited. The Commissionerate issuing the Impugned SCN to the Petitioner with the highest demand holds jurisdiction to adjudicate all connected SCN. 
• Directed that, the concerned officer is required to consider all contentions and defenses raised by the Petitioner. And, if he does not accept any of them, he is required to pass a speaking order. Hence, the petition was disposed of.