M/S. SATYAM CASTINGS PVT. LTD., CUTTACK
Vs
DEPUTY DIRECTOR, DGGI, BHUBANESWAR AND ANOTHER, SENIOR INTELLIGENCE OFFICER, DIRECTORATE GENERAL OF GST, BHUBANESWAR AND ANOTHER
Citation: 2024 taxo.online 637
The legal dispute centers around a registered dealer challenging proceedings initiated by the CT & GST Authorities under the CGST Act. The petitioner contests summonses issued by the State authority, citing Section 67 and 70 of the Act.
These summonses, aimed at producing books of accounts, are challenged on the grounds that they violate Section 6(2)(b) of the CGST Act, which prohibits initiating proceedings on the same subject matter where a State officer has already done so.
The petitioner underscores the necessity for coordination between Centre and State investigation wings, citing a CBEC circular from 2018. This circular emphasizes the need for both wings to coordinate in reaching conclusive findings of tax evasion by registered dealers under the GST regime. The petitioner argues that since the State authorities are already investigating for the tax period 01.07.2017 to 18.04.2022, the DGGI cannot conduct parallel proceedings for the same period.
However, the authorities argue that the investigations concern different issues. While the DGGI investigates clandestine supply by the petitioner in March 2022, the State CT and GST investigate the receipt of materials from a specific supplier, M/s. Anamika Enterprises. They assert that Section 6(2)(b) does not apply since the subject matter of the proceedings differs.
In its legal analysis, the court refrains from definitively opining on whether the impugned notices are barred by Section 6(2)(b). It acknowledges the dispute over the subject matter of the proceedings and the complexities involved in interpreting the statute.
The court suggests that the petitioner should have responded to the summonses with a plea based on Section 6(2)(b) and declines to interfere in the matter at this stage. However, it grants the petitioner the liberty to respond to a subsequent show cause-cum-demand notice and take appropriate recourse under the CGST Act.
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