Tvl. SVJ Holdings Archives

Assessment Order Passed by Officer Outside Specified Table Is Prima Facie Void for Lack of Jurisdiction

Issue

Whether an assessment and penalty order passed pursuant to a Show Cause Notice (SCN) issued by the Directorate General of GST Intelligence (DGGI) by an officer not listed in Table 5 of Notification No. 2/2022-Central Tax is prima facie void for lack of jurisdiction under Section 5 of the CGST/TNGST Act, 2017.

Facts

Initiation of SCN: Show Cause Notices (SCNs) underlying the assessment and penalty proceedings emanated from and were issued by the DGGI.
Jurisdictional Notification: Notification No. 2/2022-Central Tax (dated 11.03.2022) specifically governs jurisdiction, vesting the adjudication of SCNs issued by DGGI exclusively in the officers listed in Table 5 of the said notification.
Adjudication Outside Scope: The adjudication of the impugned SCNs, along with the issuance of the consequential assessment and penalty orders, was conducted by an officer not included in Table 5.
Writ Petition: The petitioners filed writ petitions challenging the assessment and penalty orders, assailing the legal competence and jurisdiction of the adjudicating authority.

Decision

Prima Facie Case Established: The High Court held that since the SCNs originated from the DGGI, a clear prima facie case was made out showing that the orders were issued in contravention of Notification No. 2/2022-Central Tax.
Interim Relief Granted: Finding the jurisdictional challenge substantial, the Court granted an interim stay on the operation of the impugned assessment and penalty orders until the next date of hearing.

Key Takeaways

Strict Adherence to Statutory Notifications: Tax authorities must strictly act within the territorial and functional jurisdiction assigned to them under specific statutory notifications issued under Sections 3, 4, and 5 of the GST Acts.
DGGI Adjudication Rules: Where an SCN is issued by the DGGI, adjudication powers are restricted solely to those officers specifically authorized under Table 5 of Notification No. 2/2022-Central Tax.
Jurisdictional Defects Warrant Interim Stay: Orders passed by officers lacking express administrative or statutory jurisdiction under the GST regime are prima facie illegal and subject to immediate judicial stay.

HIGH COURT OF MADRAS

Tvl. SVJ Holdings

Additional Commissioner of CGST and Central Excise

Senthilkumar Ramamoorthy, J.

WP Nos. 27357 and 27417 of 2026
W.M.P. Nos. 29972, 29973, 30047 and 30048 of 2026

JULY 27, 2026

G. Natarajan for the Petitioner. Rajendran Raghavan and S.T. Bharath Gowtham, Sr. SCs for the Respondent.

ORDER

1. In these two writ petitions the assessment order and penalty order are challenged primarily on the ground of jurisdiction. Adverting to Notification No.2/2022 Central Tax dated 11.03.2022, learned counsel submits that an amendment was effected conferring adjudicatory powers on the officers listed in table 5 in relation to notices issued by the DGGI. Since the adjudication was not carried out by one of the officers listed therein, he submits that the impugned orders were issued without jurisdiction.

2. Mr.Rajendran Raghavan, learned senior standing counsel, accepts notice for the first respondent and Mr.S.T.Bharath Gowtham, learned senior standing counsel, accepts notice for the second respondent. They seek time to file a counter.

3. On perusal of the documents, it is evident that the show cause notice was issued by the DGGI. Hence, a prima facie case is made out that the assessment and penalty orders were issued in contravention of Notification No.2/2022. Therefore, there will be an interim stay of the orders impugned herein until the next hearing date.

4. List the matter on 02.09.2026.

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