Parallel GST proceedings barred when one authority has already initiated action for the same tax period.

Where proceedings for the same tax period had already been initiated by the Central GST authorities, the State GST authorities were barred from commencing parallel proceedings under Section 6(2)(b) of the CGST Act, 2017. The State order could not be sustained because dual proceedings for the same matter and period were impermissible. The State proceedings were therefore set aside, and the records were directed to be transferred to the Central authorities so the already-initiated process could continue.

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Issues: Whether proceedings initiated by the State Goods and Services Tax authorities for the same tax period were barred when the Central Goods and Services Tax authorities had already initiated proceedings, and whether the State order was liable to be quashed with a direction to transfer the records to the Central authorities.

Analysis: Where proceedings for the same period had already been commenced by the Central tax authorities, the commencement of parallel proceedings by the State authorities attracted the bar under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017. On that basis, the State order could not be sustained. Since the Central authorities were to continue with the proceedings, the State authorities were also required to hand over the materials and records to enable completion of the already-initiated process.

Conclusion: The State proceedings for the same period were barred, the impugned State order was set aside, and the records were directed to be transferred to the Central authorities.

Ratio Decidendi: Once proceedings for the same matter and tax period are validly initiated by one GST authority, another authority cannot initiate parallel proceedings for that same period in view of the statutory bar against dual proceedings.

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