Proceedings pending before CGST Dept: Calcutta HC quashes proceedings initiated by State GST Dept [Read Order]

Proceedings - CGST - Calcutta High Court - State GST Department - Taxscan

While allowing a writ petition filed by Raj Metal Industries & Anr, the Calcutta High Court has quashed the proceedings initiated by the West Bengal GST authorities by considering the fact that the matter is already pending before the CGST authorities.

The Company argued before the Court that in terms of clause (b) of sub-section (2) of section 6 of the WBGST ACT, where a proper officer under Central Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under that Act on the same subject matter. Relying on a notification dated 05.10.2018 issued by the Central Board of Indirect Taxes and Customs (CBIC), they further argued that if an officer of the Central tax authority initiates intelligence based enforcement action against a taxpayer administratively assigned to State tax authority, the officers of the Central tax authority would not transfer the said case to its State tax counterpart and would themselves take the case to its logical conclusions.

While staying the summons and further proceedings by the State department, Justice Sekhar B Saraf held that the summons that have been issued on October 19, 2020 by the State GST is, prima facie, in violation of Section 6(2)(b) of the WBGST Act.

“Upon due consideration, I am of theview that the summons that have been issued on October19, 2020 by the State GST is, prima facie, in violation ofSection 6(2)(b) of the WBGST Act. Accordingly, I directstay of the above summons and any proceedingsthereunder,” the Court said.

Advocates Vinay Sharaf, Himangshu Kr Ray, Rowsan Kr Jha appeared for the petitioners.

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