Dual Tax Proceedings Halted: CGST and SGST Parallel Investigations Suspended Due to Procedural Concerns in 2017-2018 Assessment

Gauhati HC addressed parallel tax proceedings under CGST and SGST Acts for 2017-2018. The court suspended an Order-in-Original dated 11.12.2023 issued under SGST Act, noting potential procedural irregularities in initiating simultaneous proceedings for the same tax period. Notice was issued returnable on 18.03.2024, with interim relief granted pending further examination of the legal challenge.

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Issues involved:
1. Parallel proceedings under CGST Act and SGST Act for the same period of 2017-2018.

Summary:
The High Court of GAUHATI heard a case where an authority under the SGST Act issued a Demand-cum-Show Cause Notice u/s 73 of the SGST Act, followed by a similar notice under the CGST Act for the Financial Years 2017-2018, 2018-2019, and 2019-2020 regarding inadmissible Input Tax Credit availed by the petitioner. The petitioner contended that initiating parallel proceedings for the same period is impermissible under Section 6 of the CGST Act, 2017 and SGST Act, 2017.

The Court issued notice returnable on 18.03.2024. Since the counsels for the respondents accepted notices, no formal notices were required. The petitioner was directed to serve extra copies of the petition to the respective counsels within two working days.

Considering Section 6 of the CGST/SGST Act, especially Section 6[2], which prohibits initiating another proceeding for the same period under the other Act once a proceeding is initiated, the operation of the Order-in-Original dated 11.12.2023 passed by the respondent no. 3 under the SGST Act was suspended until the returnable date.

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