Parallel Proceedings by SGST Dept. on Different Subject Matter of Different Period Were Not Invalid | Bombay HC

Case Details: Yash Alloys India v. Union of India - [2023] 155 taxmann.com 594 (Bombay)

Judiciary and Counsel Details

• • G.S. Kulkarni & Jitendra Jain, JJ.
  • Kevic Setalvad, Sr. Adv. & Jehan Lalkaka for the Petitioner.
  • Jitendra B. Mishra, Styaprakash Sharma & Jyoti Chavan, Addl. Govt. Pleader for the Respondent.

Facts of the Case

In the present case, proceedings under Central GST Act were initiated against petitioner in respect of fraudulent ITC relating to period from 1-7-2017 to 31-3-2021. Thereafter, another proceedings were initiated by State GST Department under Maharashtra GST Act. It filed writ petition to challenge the proceedings under State GST Act and prayed for stay the investigation since proceedings already going on.

High Court Held

The Honorable High Court noted that as per Section 6(2)(b) of Maharashtra GST Act, where a proper officer under CGST Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by proper officer under MGST Act on same subject matter.

However, in the present case, the proceedings under MGST Act were in respect of period from 1-4-2021 to 4-10-2023 and scope of investigation was in respect of illegal refunds. Therefore, the Court held that the provisions of Section 6(2)(b) of the MGST Act, in any manner, wouldn’t be attracted in the facts of the present case to bar MGST proceedings.