HC Dismissed Writ Petition Against Summons Issued by CGST Authority Where SGST Authority Already Initiated Proceedings

Case Details: Rais Khan v. Add. Commissioner, Enforcement Wing-II, Rajasthan - [2024] 160 taxmann.com 546 (Rajasthan)

Judiciary and Counsel Details

• • Pankaj Bhandari & Mrs. Shubha Mehta, JJ.
  • Prabhansh Sharma for the Petitioner.
  • Bharat Vyas, AAG (Sr. Adv.), Ms Pratyushi Mehta, Ajay Shukla and Raghav Sharma for the Respondent.

Facts of the Case

The petitioner was issued summons by the DGGI under Section 70 of CGST Act, 2017. It filed writ petition and contended that State Authorities had already initiated proceedings and as per Section 6(2)(b), if a proper officer under SGST Act, 2017 had initiated any proceedings on a subject matter, no proceedings shall be initiated by proper officer under CGST Act, 2017 on same subject matter.

High Court Held

The Honorable High Court noted that in the instant case, the petitioner had already filed writ petition against the notice issued by State Authorities and had not put in appearance before the State Authorities. The Court further noted that the scope of Section 6(2)(b) and Section 70 is different and distinct as former deals with any proceedings on subject matter whereas latter deals with power to issue summon in an inquiry.

Therefore, the words ‘proceedings’ and ‘inquiry’ cannot be mixed up to read as if there is a bar for department to invoke power under Section 70. Thus, it was held that summons issued under Section 70 was not hit by Section 6(2)(b) and the petition was liable to be dismissed.

List of Cases Referred to

• • R.P. Buildcon (P.) Ltd. v. Superintendent, CGST & CX [2022] 144 taxmann.com 108/[2023] 95 GST 152/2023 (68) G.S.T.L. 114 (Cal.) (para 3)
  • Vivek Narsaria v. State of Jharkhand [2024] 158 taxmann.com 523 (Jharkhand) (para 3)
  • Amit Gupta v. Union of India [2023] 156 taxmann.com 167/2024 (80) G.S.T.L. 63/[2024] 101 GST 241 (Delhi) (para 6)
  • Indo International Tobacco Ltd. v. Vivek Prasad, Addl. Director General, DGGI [2022] 134 taxmann.com 157/2022 (67) G.S.T.L. 403/(2022) 1 Centax 142 (Delhi) (para 6)
  • G.K. Trading Co. v. Union of India [2021] 126 taxmann.com 211/2021 (51) G.S.T.L. 288 (All.) (para 6)
  • Kuppan Gounder P.G. Natarajan v. Directorate General of GST Intelligence 2022 (58) G.S.T.L. 292/[2022] 143 taxmann.com 289/[2023] 95 GST 341 (Mad.) (para 6)
  • Yasho Industries Ltd. v. Union of India [2021] 127 taxmann.com 781/87 GST 11/2021 (54) G.S.T.L. 19 (Guj.) (para 6).