Parallel GST proceedings barred when one authority has already completed action for the same period and subject matter.

Parallel GST proceedings for the same financial year and subject matter were held barred where central proceedings had already culminated in an order-in-original and order-in-appeal. Applying section 6(2)(b) of the CGST Act, the later State GST show cause notice and adjudication order were quashed. The matter was sent back to the stage of the original show cause notice, with directions to proceed in line with the amended statutory position and to afford the taxpayer an opportunity of hearing. Constitutional and other statutory challenges were expressly left open.

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Issues: Whether the Central and State GST proceedings relating to the same financial year and subject matter could both be sustained, and whether the impugned orders and show cause notices were liable to be set aside.

Analysis: The Court noted that the central proceedings had culminated in an order-in-original and an order-in-appeal, while the State GST authorities subsequently issued a show cause notice and passed an adjudication order on the same subject matter and period. It accepted the position that the later State action was barred by Section 6(2)(b) of the Central Goods and Services Tax Act, 2017. The Court also proceeded on the basis that the controversy arising from the central proceedings stood covered by an earlier decision of the Court and, accordingly, directed that the matter be dealt with in line with that decision. The challenges to the statutory provisions and other prayers were expressly left open.

Conclusion: The impugned orders and show cause notices were quashed, the matter was relegated to the stage of the original show cause notice, and the respondents were directed to act in accordance with the amended statutory position while granting the petitioner an opportunity of hearing.

Final Conclusion: The petition succeeded to the extent of setting aside the parallel GST proceedings and consequential orders, with the remaining constitutional and statutory challenges left undecided.

Ratio Decidendi: Where proceedings on the same subject matter and tax period have already been undertaken by one GST authority, a subsequent parallel proceeding by the other authority is barred by Section 6(2)(b) of the Central Goods and Services Tax Act, 2017.

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