Gauhati HC: Not Permissible Similar Proceedings in Respect Under CGST/SGST of the Same Period

The two parallel proceedings towards the same period are not permissible under the CGST/SGST Act, Gauhati High Court ruled.

Section 6 of the CGST/SGST Act, specifically Section 6(2), suggests that once a proceeding is started in either of the two Acts, another proceeding for the same period under the other Act cannot be initiated, the bench of Justice Manish Choudhury noted.

Under the SGST Act, the respondent/department issued a Demand-cum-Show Cause Notice under Section 73 of the SGST Act seeking the applicant to show cause as to why the amount shown would not be asked and recovered from the petitioner-assessee for the FY 2017-2018.

Under the CGST Act, the authority later issued a demand-cum-show cause notice under Section 73 of the CGST Act seeking the applicant as to why the amount shown would not be ordered and recovered from the petitioner-assessee for the FY 2017-2018, 2018-2019, and 2019-2020.

Both the notices alleged that during the said period, the petitioner-assessee claimed and used the ITC for the amounts, which were inadmissible as per Section 16[4] of the CGST Act/SGST Act. The authority under the CGST Act has passed an Order-in-Original according to the Show Cause Notice on April 27, 2023. Thereafter, under the SGST Act, an order was passed via the department. 

The taxpayer argued that two parallel proceedings for the same period, i.e., 2017-2018, are not permitted under the provisions of Section 6 of the CGST Act, 2017, and the SGST Act, 2017.

While issuing the notice the court, stopped the operation of the Order-in-Original passed through the respondent until the returnable date.

Counsel For Petitioner: A K Gupta