Two Parallel Proceedings In Respect Of Same Period Not Permissible As Per CGST/SGST Act: Gauhati High Court

The Gauhati High Court has held that two parallel proceedings in respect of the same period are not permissible as per the CGST/SGST Act.

The bench of Justice Manish Choudhury has observed that Section 6 of the CGST/SGST Act, more particularly Section 6(2), indicates that once a proceeding is initiated in either of the two Acts, another proceeding for the same period under the other Act cannot be initiated.

The respondent/department under the SGST Act issued a Demand-cum-Show Cause Notice under Section 73 of the SGST Act asking the petitioner to show cause as to why the amount indicated therein shall not be demanded and recovered from the petitioner-assessee for the Financial Year 2017-2018.

An authority under the CGST Act thereafter issued a demand-cum-show cause notice under Section 73 of the CGST Act asking the petitioner as to why the amount indicated therein shall not be demanded and recovered from the petitioner-assessee for the financial years 2017-2018, 2018-2019, and 2019-2020.

Both the notices had alleged that during the said period, the petitioner-assessee availed and utilized input tax credit (ITC) for the amounts, which were inadmissible in terms of Section 16[4] of the CGST Act/SGST Act. Pursuant to the Show Cause Notice dated April 27, 2023, the authority under the CGST Act has passed an Order-in-Original. Subsequently, the department under the SGST Act has passed an order.

The assessee contended that two parallel proceedings in respect of the same period, that is, 2017-2018, are not permissible under the provisions of Section 6 of the CGST Act, 2017 and the SGST Act, 2017.

The court, while issuing the notice, suspended the operation of the Order-in-Original passed by the respondent until the returnable date.

Counsel For Petitioner: A K Gupta

Counsel For Respondent: SC, Finance And Taxation

Case Title: Sri Subhash Agarwalla Versus State Of Assam And 4 Ors.

Case No.: Case No. : WP(C)/683/2024

Citation: 2024 LiveLaw (Gau) 14

Click Here To Read The Order