TaxTMI 
TaxTMI 
2025 (9) TMI 1210
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....of India, challenging various summons issued by the Additional Assistant Director of the Directorate General of GST Intelligence, Bhopal Zonal Unit, under Section 70 of the Central Goods & Service Tax Act, 2017 (hereinafter to be referred to as 'the CGST Act'), in an enquiry for giving evidence as well as producing documents. 02. The petitioner is a company duly registered under the provisions of the Companies Act, 1956 (New Act, 2013) and engaged in the business of extraction and sale of soybean products. 03. The Additional Assistant Director, DGGI issued the first summon dated 25.08.2023, directing the petitioner to furnish certain information in respect of transaction and sale of products to six companies mentioned in ANNEX....
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....pondents to maintain status quo and not to take coercive steps against the petitioner. 07. After notice, the respondents filed a reply by raising an objection that the writ petition is not maintainable. The petitioner is free to raise all objections after any notice or summon is issued under Section 74 of the CGST Act. It is further submitted that the bar under Section 6 of the CGST Act does not apply at the investigation/enquiry stage. 08. Shri Prasanna Prasad, learned counsel for the respondents has placed reliance upon a recent judgement delivered by the Apex Court in the case of Armour Security (India) Limited v/s Commissioner CGST, Delhi East Commissionerate, reported in 2025 SCC OnLine SC 1700 and prays for dismissal of the writ....
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.... probing an inquiry or gathering of evidence or information do not constitute "proceedings" within the meaning of Section 6(2)(b) of the CGST Act. vi. The expression "initiation of any proceedings" occurring in Section 6(2)(b) refers to the formal commencement of adjudicatory proceedings by way of issuance of a show cause notice, and does not encompass the issuance of summons, or the conduct of any search, or seizure etc. vii. The expression "subject matter" refers to any tax liability, deficiency, or obligation arising from any particular contravention which the Department seeks to assess or recover. viii. Where any two proceedings initiated by the Department seek to assess or recover an identical or a partial ov....
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....be. We say, so because, mere issuance of a summons does not enable either the issuing authority or the recipient to ascertain that proceedings have been initiated. b. Where an assessee becomes aware that the matter being inquired into or investigated is already the subject of an inquiry or investigation by another authority, the assessee shall forthwith inform, in writing, the authority that has initiated the subsequent inquiry or investigation. c. Upon receipt of such intimation from the assessee, the respective tax authorities shall communicate with each other to verify the veracity of the assessee's claim. We say, so as this course of action would obviate needless duplication of proceedings and ensure optimal utiliz....
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....pt for being afforded the statutory protection from duplication of proceedings, otherwise has no locus to claim which authority should proceed with the inquiry or investigation in a particular matter. g. However, where the authorities are unable to reach a decision as to which of them shall continue with the inquiry or investigation, then in such circumstances, the authority that first initiated the inquiry or investigation shall be empowered to carry it to its logical conclusion, and the courts in such a case would be competent to pass an order for transferring the inquiry or investigation to that authority. h. If it is found that the authorities are not complying with these aforementioned guidelines, it shall be open to ....