2026-VIL-1101-DEL
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SGST High Court Cases

GST - Scope of the bar against parallel proceedings under Section 6(2)(b) of the CGST Act, 2017, Maintainability of writ petition challenging an order under Section 73 of the CGST Act, 2017 - Petitioner did not appeal against the order raising a demand and instead filed a rectification application, followed by the present writ petition nearly two years after the order - Whether the writ petition is maintainable in the face of an efficacious alternative statutory remedy of appeal not availed within the prescribed period, and whether the delay in approaching the Court is explained - HELD - The existence of an efficacious alternative statutory remedy is a material consideration while exercising discretionary jurisdiction under Article 226 of the Constitution, and the petitioner did not demonstrate any circumstance warranting bypassing the statutory appellate mechanism, the challenge being essentially jurisdictional and factual in nature, appropriately examinable in appellate proceedings - The writ petition was instituted with a substantial lapse of time after the impugned order. The mere filing of a rectification application cannot obliterate the delay in challenging the original order, particularly where the petitioner consciously chose not to avail the statutory appeal - The writ jurisdiction is discretionary and equitable, and a party challenging an order after the statutory appeal period has lapsed must satisfactorily explain the delay, which has not been done - The pendency of a rectification application does not confer a fresh or extended period of limitation for challenging the original order, nor constitutes sufficient explanation for the delay - The petition suffers from unexplained delay and laches and is liable to fail on this ground - Scope of the bar against parallel proceedings under Section 6(2)(b) of the CGST Act, 2017 where two proceedings arise from overlapping periods but under different statutory provisions and different allegations - A Notice under Section 73 was issued by one authority alleging incorrect declaration of tax liability and inadmissible ITC, while a separate Notice under Section 74 had earlier been issued by the DGGI, alleging fraudulent availment of ITC without actual supply of goods or services, which proceedings were later treated as concluded upon payment by the principal noticee - Whether the subsequent proceedings under Section 73 were barred under Section 6(2)(b) of the CGST Act as being on the "same subject matter" as the earlier DGGI proceedings under Section 74 - HELD - The mere fact that two proceedings arise out of the affairs of the same assessee, relate to overlapping periods, or originate from transactions with some common factual background does not by itself establish identical ‘subject matter’ - The proceedings under Section 73 were directed towards determination of correct tax liability including admissibility of ITC under Section 16(2)(c), whereas the DGGI proceedings under Section 74 were founded on allegations of fraudulent availment of ITC without actual supply of goods or services and involved forty-five notices - The statutory provisions invoked, the nature of allegations and the liability sought to be determined in the two proceedings are materially different, and the bar under Section 6(2)(b) is not attracted - The conclusion of the DGGI proceedings, consequent upon payment by the principal noticee, resulted in no tax, interest or penalty being directed to be recovered from the petitioner in those proceedings; such conclusion cannot retrospectively invalidate the independently initiated proceedings under Section 73, which concerned a different statutory basis and subject matter - The bar under Section 75(13) requires a prior imposition of penalty for the same act or omission, and since no such prior penalty upon the petitioner has been shown, the said provision is not attracted - The challenge to the impugned order fails on merits as well - The writ petition is dismissed.
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