No Bar Under Section 6(2)(b) for Distinct GST Infractions

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  • Last Updated on 20 August, 2025

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SC Ruling on Section 6(2)(b) CGST Act 2025

Case Details: Armour Security (India) Ltd. vs. Commissioner, CGST, Delhi East Commissionerate - [2025] 177 taxmann.com 478 (SC)

Judiciary and Counsel Details

  • Dipankar Datta and Augustine George Masih, JJ.

Facts of the Case

The Petitioner, being the assessee, challenged the applicability of Section 6(2)(b) of the CGST Act and equivalent State GST provisions, which bar the ‘initiation of any proceedings’ on the ‘same subject matter’ where proceedings by one authority are already underway. The facts reveal that two departmental proceedings were initiated against the assessee, potentially overlapping in assessing or recovering similar tax liability, deficiency, or obligation. The assessee contended that the bar under Section 6(2)(b) should prevent the second authority from proceeding, asserting that the tax or liability was effectively the same. The Department clarified that the proceedings concerned distinct contraventions, and that actions such as issuance of summons, searches, or seizures do not amount to ‘initiation of proceedings’ under the statute. The matter was accordingly placed before the Supreme Court.

SC Held

The Hon’ble Supreme Court held that the bar under Section 6(2)(b) is triggered only when two proceedings pertain to the same subject matter, meaning identical liability, deficiency, or obligation arising from the same contravention. The Court emphasized that formal adjudicatory proceedings commence solely upon issuance of a show cause notice, while intelligence-based enforcement actions, summons, search, or seizure do not constitute initiation of proceedings. Consequently, where two proceedings relate to distinct infractions, the bar does not apply, even if the tax liability or deficiency is similar. The Court also articulated a clear two-fold test for determining ‘same subject matter’ whether an authority has already proceeded on an identical liability or offence based on the same facts, and whether the demand or relief sought is identical. Accordingly, the Supreme Court held that parallel proceedings for distinct contraventions are permissible, and the bar under Section 6(2)(b) does not preclude such action even if the resulting liability is the same.

List of Cases Reviewed

List of Cases Referred To

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied