Simultaneous Action by Centre and State GST Raises Jurisdiction Issue: Gauhati HC Bars Coercive Steps [Read Order]

The Gauhati High Court has restrained both Central and State GST ( Goods and Services Tax ) authorities from taking any coercive action against the petitioner in a case where simultaneous proceedings were initiated by both tax authorities on the same set of facts.

The Court observed that the petitions raise important questions regarding jurisdiction and natural justice and directed that the matters be listed again on 12 June 2025 for further hearing.

The petitioner, Shashi Kumar Choudhary, represented by Advocates Mr. Vinay Shraff, Ms. Banshika Podder, Mr. Z Islam, Ms. N Upadhyay and Mr. P Das, raised the grievance that both the Central GST and State GST authorities had proceeded simultaneously to pass Orders, thereby raising a fundamental jurisdictional issue.

The petitioner also alleged a violation of principles of natural justice in the conduct of proceedings by both authorities.

Both government counsels, Mr. S.C. Keyal, Standing Counsel for CGST, and Mr. B. Gogoi, Standing Counsel for the State Finance and Taxation Department, jointly raised objections regarding the maintainability of the writ petitions, arguing that an alternative statutory remedy of appeal was available to the petitioner. However, they requested time to file a response before the issuance of any notice.

Justice Arun Dev Choudhary, while granting their prayer, directed that the respondents file their replies by 1 June 2025, with the petitioner allowed to file a rejoinder within one week thereafter. The Court also directed that an extra copy of the writ petitions be furnished to the respondents' counsel by 19 May 2025.

Considering the overlapping nature of the issues in the two petitions, the Court ordered that both be taken up together and made it clear that an effort will be made to dispose of the petitions on the next date of hearing.

Importantly, the Court ordered that no coercive steps be taken against the petitioner by either tax authority until the matter is heard again on 12 June 2025.

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