Parallel GST adjudication barred where an earlier CGST notice covered overlapping entities, and the State order was quashed.

Section 6 of the CGST Act restrained the State GST Authority from continuing parallel adjudication where an earlier CGST show cause notice had already covered overlapping entities. The petitioner's objection on this overlap was placed before the State Authority but not addressed in the impugned order. The Court found the overlap undisputed and held that the State Authority had to consider the material already available on the GST portal before proceeding. On that basis, the impugned order was quashed and set aside, and the State GST show cause notice was kept in abeyance.

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Issues: Whether the State GST Authority could proceed with adjudication and pass the impugned order when an earlier show cause notice issued by the CGST Authority covered overlapping entities, in view of the statutory mandate under Section 6 of the CGST Act, 2017.

Analysis: The earlier show cause notice issued by the CGST Authority pre-dated the State GST notice and covered nine overlapping entities. The petitioner had specifically placed this objection before the State Authority, but it was not dealt with in the impugned order. The Court held that, in the circumstances, the State Authority was bound to take note of the material already available on the GST portal and could not ignore the statutory restraint arising from Section 6 of the CGST Act, 2017. The overlap of entities was undisputed, and continuation of the impugned adjudication was therefore unsustainable.

Conclusion: The impugned order was quashed and set aside, the State GST show cause notice was kept in abeyance, and the petition was allowed.

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