TaxTMI 
TaxTMI 
2026 (1) TMI 836
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....re illegal and contrary to the provisions of the Central GST Act/Himachal Pradesh GST Act and IGST Act 2017 during the pendency of this writ petition; (iii) For issuance of writ of certiorari for quashing the order dated 05.02.2025 issued by respondent No. 4 (Annexure P-7) as the same was passed in consolidation for the period of 2017-18 to 2022-23 beside this petitioner has availed the input tax credit after complying all the provisions of the Act; (iv) It is further prayed that to avoid fait accompli, pending disposal of present petition, the respondent may be directed not to take coercive steps against the petitioner firm or the similar relief may please be granted." 2. Main issue involved in present Writ Petition is related to prohibition contained in Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 ("CGST Act"), against initiation of parallel proceedings on the same subject-matter, despite an earlier initiation of proceedings by another jurisdictional authority. 3. The aforesaid issue is no-longer res-integra, but stands substantially resolved by the Apex Court in M/s Armour Security (India) Ltd. v. Commissioner, CGST, Delhi East & Anr., ....
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....ls, first, determining if an authority has already proceeded on an identical liability of tax or alleged offence by the assessee on the same facts, and secondly, if the demand or relief sought is identical. 97. We issue the following guidelines to be followed in cases where, after the commencement of an inquiry or investigation by one authority, another inquiry or investigation on the same subject matter is initiated by a different authority. a. Where a summons or a show cause notice is issued by either the Central or the State tax authority to an assessee, the assessee is, in the first instance, obliged to comply by appearing and furnishing the requisite response, as the case may 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 ....
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....d that the authorities are not complying with these aforementioned guidelines, it shall be open to the taxable person to file a writ petition before the concerned High Court under Article 226 of the Constitution of India. i. At the same time, taxable persons shall ensure complete cooperation with the authorities. It is incumbent upon them to appear in response to a summons and/or reply to a notice." 4. The petitioner has challenged the action of the Central GST authorities as well as the State GST authorities by challenging Summary of Show Cause Notice dated 6.10.2023, FORM GST DRC-01 (Annexure P-3), Summary of Show Cause Notice dated 30.11.2023, FORM GST DRC-01 (Annexure P-4), Summary of the order dated 5.2.2025, FORM GST DRC-07 (Annexure P-5) as well as Order-in-Original dated 3.2.2025 passed by the CGST authorities on the ground that the State GST authorities have also initiated inquiry/proceedings with respect to the same subject matter. 5. It is contended on behalf of the petitioner that in view of Section 6(2)(b) of the CGST Act, the Central Authority is barred from initiating any further proceedings with respect to the subject matter for which the State GST au....
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....overlapping proceedings and multiplicity, while at the same time clarifying that legitimate investigative steps by either authority may continue so long as they do not result in parallel adjudication. 10. In Armour Security case, referred supra, particularly paras 96 and 97, it has been laid down that once one authority (Central or State) has initiated proceedings first in point of time, the other authority is barred from commencing parallel adjudicatory proceedings on the same subject matter; however, bona fide steps for investigation, such as summons under Section 70, are permissible unless they amount to initiation of a parallel proceeding; and any subsequent proceedings, if inconsistent with Section 6(2)(b), must give way to the proceedings first initiated. 11. The issue involved in the present case is that whether the summons/show cause notices issued by CGST and State GST are overlapping the one and the same subject matter or the order passed by the CGST with respect to the subject matter of the order dated 3.2.2025 has been re-opened either by the CGST or the State GST and both the authorities are initiating and conducting 'parallel proceedings' which are barred by Sec....