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IN THE HIGH COURT OF RAJASTHAN
VIJAY BISHNOI, MUNNURI LAXMAN, JJ.
M/s Shree Cement Limited - Petitioner
Versus
Union of India and Ors. - Respondents
D.B. Civil Writ Petition No. 17725 of 2023.
Decided on : 08-11-2023
ORDER
The instant writ petition has been filed by the petitioner challenging the show cause notices dated 26.09.2023 issued by the respondent No.8 - Additional Commissioner (Anti Evasion), Central Goods and Service Tax, Jodhpur, dated 27.09.2023 issued by the respondent No.9 - Joint Commissioner, Enforcement Wing, RGST, Jaipur and dated 06.10.2023 issued by the respondent No.7 - Joint Commissioner, Central Goods @ Service Tax Audit, Jaipur under Section 73 and 74 of the Central Goods and Service Tax Act and Rajasthan Goods and Service Tax Act on the ground that Section 6 of the CGST/SGST Act prohibits the Centre and the State to exercise the jurisdiction simultaneously.
2. It is claimed that the action of the officials of the CGST/SGST of issuing simultaneous show cause notices on the same subject matter is contrary to Section 6(2)(b) of the CGST/SGST. It is also submitted that in terms of the guidelines issued by the GST Council dated 20.09.2017, the Central Government and State Government have decided to assign the tax payers registered in the State of Rajasthan to one Authority and as per the same, the Administrative Authority in the case of petitioner is the Central Government. However, in violation of the guidelines, the officials of the State GST Council has also issued show cause notice to the petitioner.
3. Issue notice. Issue notice of the stay application also.
4. Mr. Rajendra Sarswat, appearing on behalf of the respondent - Central GST and Mr. Hemant Datt, appearing on behalf of the respondent - State GST are directed to accept notice on behalf of the respective respondents.
5. Copy of the writ petition be supplied to learned counsel for the respondents during the course of the day.
6. Till the next date, the respondents shall not pass any final order in the proceedings initiated pursuant to the show cause notices dated 26.09.2023, 27.09.2023 and 06.10.2023.
7. However, the respondents are free to move application for vacation of the interim order along with their reply.
Simultaneous show cause notices by Central and State GST authorities violate Section 6(2)(b) of the CGST/SGST Act and GST Council guidelines.
The court stayed proceedings on a show-cause notice, indicating the need for further consideration of jurisdiction under Section 65(7) of the Central Goods and Services Tax Act, 2017.
Jurisdiction prohibits State authorities from initiating proceedings when Central GST has already initiated consistent inquiries on the same subject matter under Section 6(2)(b) of the CGST Act.
The jurisdiction under the Central Goods and Services Tax Act prohibits State GST authorities from initiating parallel proceedings once Central GST proceedings have commenced on the same subject matt....
Cross-empowerment of State GST officers under the CGST Act requires a government notification; without it, their actions are invalid.
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