A Single Bench of the Madras High Court recently directed the petitioner to file a reply to the Show Cause Notice issued afresh by the state tax authority on a matter already pending before the central authority.
The petitioner-M/s.VGN Projects Estates Private Limited has challenged the impugned show cause notice in Form GST DRC-01 on the ground that the same has been issued in violation of Section 6(2)(b) of the Tamil Nadu Goods and Services Tax Act, 2017. According to the petitioner, a similar show cause notice was issued by the Central Authority under CGST Act, 2017 on 29.07.2022 against the petitioner, on the very same matter.
The Single Bench of the Madras High Court heard Radhika Chandra, for the petitioner, Amirtha Dinakaran, Government Advocate on behalf of respondent No.1 and V.Sundareswaran, Senior Panel Counsel on behalf of respondent No.2.
The counsel for the petitioner, read down Section 6(2)(b) of the TNGST Act, 2017 as follows: “6(2)(b) where a proper officer under the Central Goods and Service Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this Act on the same subject matter”, challenging the show cause notice.
The respondents have also stated in their written instructions that once a detailed reply is sent by the petitioner stating their objections with regard to the impugned show cause notice, the same will be considered by them on merits.
“A detailed reply has not been sent by the petitioner to the impugned show cause notice. In the written instructions, it is also stated that if the petitioner submits the same then accordingly those similar defects for which notice has been issued by the Central Authority will be omitted and action shall be initiated in respect of the balance defects alone”, the representative of the respondent-revenue stated.
The Bench of Justice Abdul Quddhose observed “The only limited relief that can be granted to the petitioner is to permit them to file a detailed reply to the impugned show cause notice” and disposed of the writ petition by directing the petitioner to submit a reply to the impugned show cause notice within a period of three weeks.
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