CGST Officers Empowered to Act on Pre-GST Service Tax Matters: CESTAT Dismisses Jurisdictional Challenge

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed a jurisdictional challenge, ruling that officers of the Central GST (CGST) department are empowered to act on legacy service tax matters from the pre-GST era. The appellant had argued that with the repeal of the Finance Act, 1994 (which governed service tax), CGST officers lacked the jurisdiction to issue show-cause notices or conduct proceedings for old service tax issues. However, the tribunal upheld the department's position, citing the saving clause under Section 174 of the CGST Act. This clause ensures that investigations and legal proceedings for transactions from the previous tax regime can be initiated and continued by the officers of the new regime. This judgment provides crucial legal clarity, affirming the authority of CGST officials to adjudicate and recover dues related to the erstwhile service tax law.