IMPORTANT POINT
The court established that the authority that initiates tax enforcement proceedings retains jurisdiction to complete the investigation, reinforcing the principle of cross empowerment between Central and State tax authorities under the GST framework.

JUDGMENT :

DEEPAK ROSHAN, J.

1. The instant application has been preferred by the petitioner for the following reliefs:

(a) For issuance of an appropriate writ, order or direction, holding and declaring that in terms of Section 6 of the Central Goods and Services Tax Act, 2017 read with Section 6 of the Jharkhand State Goods and Services Tax Act, 2017 as also the provision of Integrated Goods and Services Act, 2017, read with clarifications issued from time to time, the authority once initiated the proceedings commencing from enquiry/ search and seizure, is empowered to complete the entire process of investigation and complete the modalities, in the case in hand State Goods and Services Tax and not by the Preventive Wing of Central Goods & Services Tax or by the Directorate General of Goods & Services Tax Intelligence.

(b) Consequent upon holding and declaring that the initiation and conclusion by the prior authority is the rule of law, hence, the notices issued subsequently viz. (Annexure-3, Annexure-4, Annexure-5, Annexure-7, Annexure-8, Annexure-10, Annexure-12 Series & Annexure-14) issued by the two different Wings of Central Goods & Services Tax be quashed and set aside and the State GST be allowed to carry the further proceedings.

2. During the pendency of the writ petition, the Petitioner filed an Interlocutory Application vide I.A. No. 9286/2023 inter-alia challenging the attachment of bank accounts of the Petitioner by issuing Form GST DRC-22 dated 30.04.2023, issued by the Respondent No. 5 herein (Senior Intelligence Officer, DGGI, Jamshedpur) and more than 7 Bank Accounts have been frozen.

3. The brief facts of the case lie in a very narrow campus. The Petitioner is the proprietor of M/s. Manish Trading Company, Lalgutwa, Ranchi, having GSTIN No. 20AHUPN9856C2ZZ and is carrying on the business of trading of Iron & Steels and Cements, since 2017-18. As per the averments made in the writ petition, the purchases and sales are duly reflected in the GST returns furnished by the Petitioner and the outward tax liability is adjusted against the Input Tax Credit available to the Petitioner.

On 16.03.2023, an inspection was carried out by the Intelligence Bureau of the State Goods & Service Tax, and in terms thereof GST INS-01 has been issued and after the inspection is concluded, the GST Officers fixed the date for furnishing books of accounts. As per the Petitioner an amount of Rs. 34.00 lakhs from the Cash ledger of the Petitioner and Rs. 06.00 lakhs from the proprietorship firm of his wife were made to deposit.

While the proceedings had been initiated by the State Goods & Services Tax Department, the Petitioner was served with a notice dated 10.04.2023 by the Preventive Branch of Central Goods & Services Tax, Ranchi with a direction to reverse the Input Tax Credit along with interest and penalty on account of alleged purchases from the non-existent entity.

While two departments were in seisin of the proceedings, a search was carried out by the DGGI, Intelligence Branch of CGST on 06.06.2023 and various seizures were made and a Panchnama was also drawn to that effect. Followed by the earlier notices of the Preventive Branch dated 10.04.2023, various notices were issued from time to time viz. 07.06.2023; 21.06.2023 including Summons by the Preventive Wing dated 26.06.2023. Simultaneously after the search was carried out by the DGGI Unit, simultaneous Summons were issued vide Summon dated 21.06.2023; 03.07.2023; 07.07.2023; 11.07.2023 and 13.07.2023.

Again on 24.07.2023, the residential flat of the Petitioner was searched and the statement of Petitioner’s wife and mother namely Mrs. Soni Narsaria and Mrs. Usha Narsaria, were recorded. While the summons issued by the State GST (Preventive Wing) and DGGI was to be attended, the petitioner made certain reversal on different dates vide GST DRC 03, totaling to a sum of Rs. 3.42 Crores.

Under the circumstances, since the petitioner has received summons from 3 Departments of GST, the petition