Gauhati HC Ruling: Conducting 2 Similar Proceedings for a same period not permissible under section 6 of CGST/SGST Act
In a recent ruling, the Gauhati High Court, in case of Mohan Singh vs UOI [WP(C)/7975/2018], has emphasized that conducting two similar proceedings for the same period is not permissible under the CGST/SGST Act. Justice Manish Choudhury’s bench highlighted Section 6(2) of the CGST/SGST Act, which states that once a proceeding is initiated under either Act, a parallel proceeding for the same period under the other Act cannot be commenced.
The case arose when the respondent/department issued a Demand-cum-Show Cause Notice under Section 73 of the SGST Act, calling upon the applicant to explain why the indicated amount should not be demanded and recovered for the Financial Year 2017-2018. Subsequently, under the CGST Act, another notice was issued under Section 73, covering the Financial Years 2017-2018, 2018-2019, and 2019-2020.
Both notices alleged that during this period, the petitioner-assessee had claimed and utilized Input Tax Credit (ITC) amounts that were deemed inadmissible under Section 16(4) of the CGST Act/SGST Act. The CGST Act authority then issued an Order-in-Original based on the Show Cause Notice on April 27, 2023. Following this, an order was again passed by the state authorities under the SGST Act as well.
The taxpayer contended that conducting two separate but similar proceedings for the same period, specifically 2017-2018, was not permissible under Section 6 of the CGST Act, 2017, and the SGST Act, 2017.
In light of this, the court has suspended the operation of the Order-in-Original passed by the respondent until the returnable date.
This ruling by the Gauhati High Court serves as a reminder of the legal provisions under the CGST/SGST Act regarding the initiation of parallel proceedings for the same period, ensuring procedural fairness and clarity in tax matters.
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