Parallel GST proceedings barred where State action already covered alleged input tax credit irregularity; later Central notice stayed.

Central GST authorities were restrained from proceeding with a later show cause notice where State GST authorities had already initiated proceedings on the same subject-matter, as section 6(2)(b) of the GST enactments bars parallel proceedings by different tax authorities. The notices related to the same period and the same alleged wrongful availment of input tax credit under section 16(4), so the later Central notice was kept in abeyance until the next date of listing.

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Issues: Whether the Central Goods and Services Tax authorities could proceed with the show cause notice dated 27.12.2023 when proceedings on the same subject-matter had already been initiated by the State Goods and Services Tax authorities, having regard to section 6(2)(b) of the GST enactments.

Analysis: The notices concerned alleged wrongful availment of Input Tax Credit for the same period and the same alleged infraction under section 16(4) of the GST enactments. In view of the pending proceedings already initiated by the State authorities, and considering the statutory bar against parallel proceedings on the same subject-matter, the Central authorities were directed not to proceed further on the later notice until the next date fixed.

Conclusion: The Central Goods and Services Tax authorities were restrained from proceeding further with the show cause notice dated 27.12.2023 until the next date of listing.

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