Parallel GST proceedings over alleged excess input tax credit stayed pending reply on the Section 6(2)(b) challenge.

A petition challenged continuation of State tax proceedings concerning the same period and alleged wrongful or excess input tax credit after Central tax action had already been initiated and concluded, invoking the bar under Section 6(2)(b) of the CGST Act and the relevant circular. The State Tax Authorities sought time to place their response on record, and further consideration of the challenge was deferred. Meanwhile, the impugned State order remained stayed until further orders, an affidavit in reply was called for, and time to carry out amendment was extended.

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Issues: Whether the impugned order passed by the State Tax Authorities should remain stayed pending consideration of the petition, and whether the petitioner's challenge under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 required further reply from the State Tax Authorities.

Analysis: The petition raised a contention that proceedings in respect of the same period and the same alleged wrongful or excess Input Tax Credit had already been initiated and concluded by the Central Tax Authorities, and that the impugned State proceedings could not continue in the face of Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 and the cited circular. The State Tax Authorities sought time to place their response on record, and the matter was directed to be listed again for further consideration.

Outcome: The time to carry out amendment was extended, an affidavit in reply was called for, the petition was listed for further hearing, and the impugned order remained stayed until further orders.

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