GST Act | Notification Not Needed For Cross-Empowerment Of State Officials : Kerala High Court

In a significant judgment having a wide impact on several pending cases, the Kerala High Court on Wednesday (January 15) ruled that separate notification is not necessary for the cross-empowerment of State officials under the Goods and Services Tax Act.A division bench comprising Justice Dr AK Jayasankaran Nambiar and Justice S Easwaran delivered this significant judgment while answering a reference made to it by a single bench.The division bench endorsed the prima facie view expressed by the single bench (Justice P Gopinath) that notification was not necessary for cross-empowerement.The division bench observed that the absence of a notification specifying the conditions for cross-empowerment will not mean that the State or Union Territory officials lack the power to exercise the powers under the GST Act.It stated :"The provisions of Section 6(1) of the CGST Act make it abundantly clear that the cross-empowerment of the Officers of the SGST/UTGST Department to function as proper officers under the CGST Act is through the legislative mandate under Section 6(1) of the CGST Act. It is a mandate and empowerment that is presently unqualified but expressly made subject to such conditions as the Government shall, on the recommendation of the Council, by notification, specify. In other words, while the statutory mandate at present is unqualified, it will be qualified in the event the Government specifies conditions for the exercise of power under the statutory mandate, pursuant to the recommendations of the Council. We cannot persuade ourselves to read the statutory mandate as one that does not presently bring about a cross-empowerment but merely envisages such a situation as and when a notification is issued at some time in the future."The division bench observed that similar view was expressed by the Delhi High Court in Indo International Tobacco Ltd. and Ors. v. Additional Director General, DGGI and Ors. - [(2022) 97 GSTR 414 (Delhi)]. The Special Leave Petition filed in the Supreme Court against the Delhi High Court's judgment was withdrawn.The single bench, while making the reference, disagreed with the view expressed by the Madras High Court in Tvl. Vardhan Infrastructure v. Special Secretary, Head of the GST Council Secretariat that without a specific notification under Section 6(1) of the GST Act, the State authorities are not empowered to exercise the powers under the GST Act.Advocate Ammu Charles appeared for the petitioner.Advocates S.Sreejith and J Vishnu appeared for the Union. Special Govt Pleader Mohammed Rafeeq appeared for the State.Case : Pinnacle Vehicles and Services Pvt Ltd v. Joint CommissionerCitation: 2025 LiveLaw (Ker) 33Click here to read the judgment

GST Act | Notification Not Needed For Cross-Empowerment Of State Officials : Kerala High Court

LIVELAW NEWS NETWORK

Tags