Concurrent proceedings by the Central and State on the same topic cannot be regarded as a cause to avoid personal hearing, ruled by the Madras High Court (HC) chaired by Justice Abdul Quddhosh.
Tvl Metal Trade Incorporation, the petitioner, requested in its writ petition that the records of the summonses issued by the State Tax Officer (STO) be quashed. It also requested that the STO refrain from controlling the petitioner under the guise of cross-empowerment of tax authorities in accordance with Chapter XIV of both the Central Goods and Services Tax (CGST) Act of 2017 and the Tamil Nadu Good and Services Tax (TNGST) Act, 2017.
The petitioner has challenged the impugned Summons issued by the STO under Section 70 (1) of TNGST Act and under Section 70 (1) of CGST Act on grounds both the Central and State Authorities do not have powers to initiate proceedings against the petitioner simultaneously under the respective GST Acts with regard to the same subject matter.
Also stated that on a day to day basis, threatening the petitioner and they have been calling upon the petitioner to come for personal hearing.The competent official may issue a summons to submit documents, evidence, or any other information relevant to the inquiry as analogous to a civil court under the provisions of the Code of Civil Procedure, Code, 1908. This authority is granted under section 70(1) of both the CGST and TNGST Acts.
The petitioner did not show up for the in-person hearing, the bench noted. It was further mentioned that the petitioner must take part in the Central’s investigation to support his defence. Only when the petitioner goes before the respondent in accordance with the summons he received will the truth be revealed, not in any other circumstance.
Furthermore, If it is the same subject matter, the State Authority cannot prosecute the petitioner once again as the Central Authority has already initiated action against the petitioner in respect of the very same subject matter.
The petitioner was given one more chance by the court to take part in the in-person hearing. On February 16, 2023, the date of the personal hearing, he must come before the STO and raise all of his objections to the contested summons.
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