Central Goods and Services Tax Act, 2017

Article 226

Central Goods and Services Tax Act, 2017 - Section 6(2)(b)

Writ petition - Maintainability - Parallel proceeding initiated under CGST & SGST Act -

DIGGI conducted an investigation at assessee's business premises and seized records and accounts for the relevant F.Y. and issued summons under section 70 of the CGST /OGST Act. The assessee filed writ petition contending that the DGGI could not conduct a parallel proceeding and investigation, as the State authorities were already proceeding against it. Held: Assessee disputed that the proceedings initiated by the officer under the State GST Act and the show cause notice issued by the DGGI related to the same subject matter. The DGGI was investigating clandestine supply by the assessee during the relevant month only, whereas investigation by State authorities was with reference to receipt of materials from one of its suppliers. Considering the dispute raised regarding operation of section 6(2)(b) in this regard on behalf of opposite parties there was no reason why the assessee did not respond to the summons issued by the DGGI taking a plea that it was barred by Section 6(2)(b) of the CGST/OGST Act. Further, in the present case, a show cause-cum-demand notice had already been issued on 29-12-2023. Such being the position, the CGST/OGST Act declined to interfere in the instant matter and assessee was granted liberty to take appropriate recourse to the provisions of the CGST/OGST Act.

Case Relied: Vallabh Das v. Madan Lal and Ors (A.I.R. 1970 SC 987)

REFERRED :

FAVOUR : Directions issued

A.Y. :

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