The Madras High Court held that the GST Authorities can implement the investigation beneath section 70 with proceedings beneath section 6(2)(b) of the CGST Act.
The petitioner, Kuppan Gounder P.G.Natarajan, is the Managing Director of a Company enrolled beneath the Indian Companies Act, 1956, that is involved in the transportation business. The petitioner seeks to cancel the summons provided through the respondent beneath section 70 of the central goods and services tax act 2017.
Mr E.Om Prakash the counsel of the petitioner has mentioned that the petitioner’s firms come beneath the state jurisdiction beneath the state goods and service tax act 2017 and the respondent is the head through the central jurisdiction and thus he has no jurisdiction to execute the proceedings beneath the CGST or SGST act even when the states as well as the authorities are into the matter and having actions in the same direction.
Mr Prakash moreover specified that beneath section 62 of the SGST act an assessment shall get performed but the mentioned procurement shall not be subjected towards the case of the petitioner and thus going through the said act in which the proper office is seeing the case, the state council and not the respondent. There is no notification or order that empowers the respondent. Moreover, it is furnished that there is no notification or order that empowers the respondent to execute the assessment proceedings or ask for the demand with respect to the petitioner as they come in the jurisdiction of the state head beneath the SGST act.
Moreover, it is furnished that the state head has previously provided 2 notices towards the supposed inconsistency in the returns and the concern is due in their law, and towards the same time the respondent has no jurisdiction to provide the summons.
The two judges Justice T.S. Sivagnanam and Justice Sathi Kumar Sukumara Kurup believed that the extent of Section 6(2)(b) and Section 70 is totally varied from each other as the before deals with any “proceedings on a subject matter/same subject matter” in which section 70 concerns with the authority to summon in the investigation and thus the words proceedings and the inquiry shall not blend to understand as if there is the bar for the respondent to call on the power beneath section 70 of the CGST act.
