In NATIONAL BUILDING CONSTRUCTION COMPANY LIMITED vs UNION OF INDIA, a petition was filed before the Delhi High Court by the National Building Construction Corporation Ltd. a Public Sector Undertaking, challenging a 2015 letter from the DGCEI, according permission to its additional director general of Lucknow zone to probe tax evasion cases of all NBCC branches. NBCC has allegedly failed to pay service tax on the Project Management Consultancy Charge and also for quashing of notice/summons issued to it in January this year, for production of documents and details, issued by DGCEI’s assistant director of Meerut unit, contending that they were “unwarranted and arbitrary”. NBCC has not opted for centralized registration for service tax purposes, and has 88 service tax registrations in different Commissionerates and the primary issue raised by the NBCC was whether the DGCEI can centralize investigation with DGCEI, Lucknow at one place with all India jurisdiction, though the petitioner has opted for 88 service tax registrations for different projects in different States.
Dismissing the petition, the Delhi High Court held that in the Central Excise Act there is no concept of territorial jurisdiction laid in the Statute itself and it was possible that more than one officer may have concurrent jurisdiction to adjudicate. The Board has wide discretion in power while fixing the local limit assigned to a Central Excise Officer and is therefore empowered to assign cases to one of the competent authorities. Local limit can be pan or all India.
The provision permits and allows the Board to fix "local limits‟ and does not bar and prevent the Board from conferring all India jurisdiction. The Board is equally empowered to authorize centralised or pan India investigations to be undertaken by the Central Excise Officers. Central Excise Officers of DGCEI have all India jurisdiction and can issue notices and enquire into the matters relating to service- tax against any assessee/ person even if the said person or assessee is registered with one or multiple Commissionerates.
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