State GST Department Cannot Initiate Proceedings if Central GST Department Has Already Done So
By: Admin
Date: November 25, 2024
Category: Important Pronouncements
Key Judgment:
In Baazar Style Retail Ltd. v. Deputy Commissioner of State Tax [W.P.A. No. 16185 of 2024, dated August 19, 2024], the Hon’ble Calcutta High Court ruled that the State GST Department cannot initiate proceedings on the same subject matter if the Central GST Department has already initiated proceedings, as per Section 6(2)(b) of the West Bengal Goods and Services Tax Act, 2017 (“WBGST Act”).
Facts:
The Petitioner, Baazar Style Retail Ltd., challenged a show-cause notice dated December 27, 2023, and an order dated April 27, 2024, issued under Section 73 of the WBGST Act.
The Petitioner argued that the Central GST Department had already initiated proceedings on the same matter and issued a show-cause-cum-demand notice for FY 2018-2019, in which the Petitioner had participated.
Issue:
Can the State GST Department initiate proceedings when the Central GST Department has already done so on the same subject matter?
Judgment Highlights:
- Provision under Section 6(2)(b):
Section 6(2)(b) of the WBGST Act prohibits the initiation of proceedings by one GST authority if another GST authority has already initiated proceedings on the same subject matter.
- Observations:
The Central GST Department had issued the SCN before the State GST Department’s action.
Thus, the subsequent notice and order by the State GST Department violated the provisions of Section 6(2)(b).
- Decision:
The Court held that the proceedings initiated by the State GST Department were invalid.
The impugned notice and order were set aside, and the writ petition was disposed of.
Conclusion:
This judgment reinforces that under Section 6(2)(b) of the WBGST Act, overlapping proceedings by multiple GST authorities are not permissible, ensuring clarity and avoiding duplication of actions.
