Simultaneous State & Central GST Investigations Upheld; Petitioner Only a Witness, Directed to Attend Hearings.

The HC dismissed the writ petition, finding no merit in the petitioner's challenge against simultaneous proceedings by State and Central GST authorities. The court held that investigations targeted different entities, and the petitioner was summoned solely as a witness. The court directed the State Tax Authorities in Maharashtra and Patna to issue notices for appearances in December and November 2023, respectively. The petitioner was permitted to present documents to the first authority and obtain authenticated copies for the other.

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Issues Involved:
1. Simultaneous proceedings by State and Central GST authorities.
2. Applicability of Section 6 of the GST Act and related CBEC Circular.
3. Validity of summons issued under Section 70 of the GST Act.

Summary:

Issue 1: Simultaneous Proceedings by State and Central GST Authorities
The petitioner, a resident of West Bengal, challenged the notices issued by the State and Central GST authorities under Section 70 of the GST Act, summoning him as a witness. The petitioner argued that simultaneous proceedings by both authorities are not permissible under Section 6 of the GST Act and relied on a CBEC Circular dated 05.10.2018 to support this contention. The petitioner also cited judgments from the High Courts of Gujarat and Delhi to bolster his argument.

Issue 2: Applicability of Section 6 of the GST Act and Related CBEC Circular
The court examined the applicability of Section 6 and the CBEC Circular dated 05.10.2018. It was noted that Section 6(2)(b) prohibits a 'Proper Officer' from initiating proceedings on the same subject matter if another officer has already initiated proceedings. However, the court found that the investigations by the State and Central authorities were against different entities (M/s. Vedam Enterprises in Maharashtra and M/s. Arti Plastics in Bihar) and the petitioner was only summoned as a witness. The court referred to the High Court of Delhi's judgment in Indo International Tobacco Ltd., which clarified that Section 6 and the Circular have limited application and are not intended to cover all scenarios arising in GST administration.

Issue 3: Validity of Summons Issued Under Section 70 of the GST Act
The court emphasized that the summons issued to the petitioner under Section 70 were for him to appear as a witness and produce documents, not as a subject of investigation. The court referenced a Division Bench of the Allahabad High Court, which stated that Section 70 empowers the proper officer to summon any person necessary for an inquiry, distinct from proceedings under Sections 67, 73, or 74.

Conclusion:
The court found no merit in the petitioner's argument against the simultaneous proceedings, as the investigations were against different entities and the petitioner was summoned only as a witness. The court directed the State Tax Authority in Maharashtra to issue a notice for appearance in December 2023 and the State Tax Authority in Patna to issue a notice in November 2023. The petitioner was allowed to produce documents before the first authority that requisitions them and obtain authenticated copies for the other authority. The writ petition was dismissed.

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