Summons, Searches and Show Cause Notices - Parallel GST Adjudications: Defining 'Proceedings' u/s 6(2)(b) of the CGST Act

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....ed after a search and seizure, where an earlier show cause notice had been issued by a different GST authority. The Court engaged with a wide body of High Court decisions and administrative circulars, and set out principles and practical guidelines to avoid overlapping or parallel proceedings within the GST enforcement architecture. Key Legal Issues * Whether issuance of summons (or conduct of search/investigation) amounts to "initiation of proceedings" within the meaning of Section 6(2)(b) CGST Act. * The meaning of "subject matter" in Section 6(2)(b): whether it includes matters mentioned in a summons or is determined by the contents of a show cause notice. * The scope and purport of "order" u/s 6(2)(a) and the interplay between cr....

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....ons as a precursor to proceedings-an information-gathering step, not a formal adjudicatory initiation. The Court endorsed this view, concluding that "all actions that are initiated as a measure for probing an inquiry or gathering of evidence or information do not constitute 'proceedings' within the meaning of Section 6(2)(b)." The judgment explains that proceedings, in the sense intended by Section 6(2)(b), are those actions that have a determinate adjudicatory character and culminate in a definitive outcome-most significantly the issuance of a show cause notice and consequent adjudication. The Court observed: "The expression 'initiation of any proceedings' occurring in Section 6(2)(b) refers to the formal commencement of a....

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....ross the entire value chain by either authority. The initiating authority in such intelligence cases may carry the matter to its "logical conclusion" (including issuance of SCN, adjudication, recovery, appeals). However, a restriction in Section 6(2)(b) prevents initiation of an adjudicatory proceeding on the same subject matter by another authority once formal proceedings are initiated. The Court also emphasised that intelligence-based action is distinct from audit/scrutiny-based actions which should normally be exercised by the authority to which the taxpayer is assigned. 5. Procedural guidance and administrative coordination Recognising operational friction in multi-jurisdictional investigations, the Court issued practical guidelines:....