Court Dismisses Petition Challenging Confiscation Orders by Proper Officers; Affirms Appeal Remedy Under GGST Act
In a significant decision, the Gujarat High Court has upheld the cross-empowerment of officers under the State Goods and Services Tax (GST) Act to function as proper officers under the Integrated Goods and Services Tax (IGST) Act without requiring additional notifications. The division bench, comprising Justices A.S. Supehia and Vaibhavi D. Nanavati, dismissed the petition filed by M/s Jai Ganesh Enterprise challenging the confiscation and penalty orders issued by State GST officers under the IGST framework.
The petitioner, M/s Jai Ganesh Enterprise, contended that the confiscation order dated March 27, 2026, and the summary order dated April 24, 2026, were without jurisdiction as no notification was issued by the Central Government specifying the cross-empowerment of State officers under Section 4 of the IGST Act. The petitioner also argued that there was no provision for filing an appeal against such orders under the IGST Act, leaving them remediless.
The court, however, found that Section 4 of the IGST Act clearly authorizes officers appointed under the State GST Act to act as proper officers for the purposes of the IGST Act, unless exceptions or conditions are specified by the government. The bench noted that the Gujarat Commissioner of State Tax had already specified proper officers under the GGST Act in an order dated June 23, 2017, thereby empowering them to act under the IGST framework.
Citing precedents from various High Courts, including Punjab & Haryana, Madhya Pradesh, and Calcutta, the bench emphasized that Section 4’s language is unambiguous in empowering State GST officers to act under the IGST Act. The court also addressed the petitioner’s concerns about the appeal process, clarifying that appeals against orders by State officers could be filed under Section 107 of the GGST Act, thereby providing an adequate remedy.
The Gujarat High Court’s judgment reinforces the statutory scheme of cross-empowerment within the GST laws, aiming to streamline the tax administration and avoid dual proceedings. The decision underscores the judiciary’s role in interpreting statutory provisions to ensure a cohesive tax regime across the country.
Bottom line:-
GST - Proper officers under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorized to act as proper officers under the Integrated Goods and Services Tax Act (IGST Act), 2017 without requiring further notification unless exceptions or conditions are specified.
Statutory provision(s): Section 4 of the IGST Act, Section 107 of the CGST Act, Section 6(3) of the GGST Act, Section 129 and 130 of the GST Acts.
M/s Jai Ganesh Enterprise v. Union of India, (Gujarat)(DB) : Law Finder Doc id # 2943921
