2025-VIL-1068-ORI
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SGST High Court Cases

GST - Section 6 of the CGST Act, 2017, Parallel Proceedings on same subject-matter, Cross-empowerment – Petitioner was subjected to tax liability determinations under Section 74 for the tax periods from December 2017 to March 2018 and August 2018 by the State Proper Officer. Subsequently, the Central Proper Officer also initiated proceedings under Section 74 for the same tax periods and subject-matter. The petitioner challenged the Order-in-Original passed by the Central Proper Officer on the ground that it was barred by the provisions of Section 6(2)(b) of the CGST Act - Whether the Central Proper Officer had the jurisdiction to initiate proceedings under Section 74 when the State Proper Officer had already initiated proceedings on the same subject-matter – HELD – The Orders passed by the State Proper Officer relates to allegation of availing ITC by way of fake invoices. All the Orders of the State Proper Officer are outcome of intelligence received or supplied to the State CT. The proceeding initiated by the Central Tax Proper Officer was based on the very same intelligence alleging input tax credit being wrongfully availed and utilised by the petitioner with respect to transactions same suppliers. It is apparent that the exercise of power under Section 74 by the State Proper Officer based on the intelligence received is before the initiation of proceeding by the Central Proper Officer under said provisions on the very same subject-matter - The petitioner ought not to have been subjected to tax again with respect to very same subject-matter by the Central Proper Officer despite the fact of determination of tax liability being made by the State Proper Officer by initiating proceeding under Section 74 at the earlier point of time - The subject-matter in both the proceedings under Section 74 being in respect of the alleged wrongful availment of input tax credit by dint of fake invoices, the latter proceeding initiated by the Central Proper Officer deserves to be quashed - The initiation of proceedings by the Central Proper Officer under Section 74 for the same tax periods and subject-matter is in violation of the provisions of Section 6(2)(b) of the CGST Act - the Show Cause Notice and the Order-in-Original passed by the Central Proper Officer are quashed – The writ petition is allowed
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