CGST summons power upheld where inquiry under Section 70 is distinct from the bar on parallel proceedings.

Section 70 of the CGST Act empowers a proper officer to summon a person during inquiry, and that power is distinct from the bar in Section 6(2)(b) against parallel proceedings on the same subject-matter. The analysis notes that cross-empowerment under GST permits both Central and State tax authorities to undertake intelligence-based enforcement action, so prior State action does not by itself create a jurisdictional embargo on a Central summons. On that reasoning, the summons was treated as valid and the challenge to quash it failed.

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Issues: Whether the summons issued under Section 70 of the Central Goods and Services Tax Act, 2017 was without jurisdiction because State tax authorities had already initiated action and Section 6(2)(b) of the Act barred the Central authority from proceeding on the same subject-matter.

Analysis: The clarification issued by the Central Board of Excise & Customs and the GST Council's decision recognized cross-empowerment, under which both Central and State tax authorities may undertake intelligence-based enforcement action. Section 6(2)(b) bars initiation of proceedings by another proper officer only on the same subject-matter, whereas Section 70 empowers a proper officer to summon a person in the course of an inquiry. The two provisions operate in distinct fields, and the statutory bar on parallel proceedings cannot be read as a bar on issuing summons for inquiry. The prior State action and the summons issued in the present case therefore did not create a jurisdictional embargo on the respondent.

Conclusion: The summons under Section 70 was held to be within jurisdiction and not barred by Section 6(2)(b); the challenge failed.

Final Conclusion: The appellant was not entitled to quashing of the summons, and the writ appeal was dismissed.

Ratio Decidendi: A summons issued under the inquiry power in Section 70 of the Central Goods and Services Tax Act, 2017 is not barred by Section 6(2)(b) unless proceedings on the same subject-matter have already been initiated by the proper officer under the other taxing enactment; inquiry and proceedings are distinct statutory concepts.

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