Dual proceedings concerning the same subject matter initiated by State GST authorities after Central GST proceedings are barred under Section 6(2)(b) of the CGST Act.

ORDER :

S.R.KRISHNA KUMAR, J.

In this petition, petitioner seeks for the following reliefs:-

“i) Issue a Writ of Certiorari or direction in the nature of a writ of certiorari quashing the order in original passed under section 74 of the Act date 30.04.2024 issued by the Respondent No. 1 herein marked as Annexure-A1.

ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the summary of order in form GST DRC 07 dated 05.05.2024 passed by the Respondent No.1 herein marked as Annexure - A2

iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order of adjudication passed under section 73(9) of the Act dated 08.02.2024 issued by the Respondent No. 2 herein marked as Annexure-B1.

iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the summary of order in form GST DRC 07 dated 08.02.2024 passed by the Respondent No.2 herein marked as Annexure - B2.

v) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity”

2. Heard learned counsel for the petitioner, learned counsel for respondent No.1 and learned HCGP for respondent No.2 and perused the material on record.

3. A perusal of the material on record will indicate that the Central GST Department initiated proceedings against the petitioner vide show-cause notice dated 19.10.2020 subsequent to which the State GST authorities issued summons dated 23.08.2023 and initiation dated 07.09.2023 subsequent to which a show-cause notice dated 19.12.2023 was issued by the State GST authorities stating that since the petitioner had filed GSTR-3B belatedly, he was eligible to claim input tax credit for the year 2018-19 and therefore issued another show cause notice dated 02.01.2024 to show cause as to why an order under Section 73(9) of the Act should not be issued. In the meanwhile, respondent No.2 issued intimation dated 26.12.2023 followed by another show cause notice dated 02.01.2024. Since the petitioner failed to submit reply to the aforesaid intimations/letters/show-cause notices, respondent No.2 proceeded to pass the impugned adjudication order dated 08.02.2024 at Annexure-A and thereafter respondent No.1 passed an order-in-original dated 30.04.2024, aggrieved by which petitioner is before this Court by way of the present petition, inter alia contending that in the light of the provisions contained in Section 6(2)(b) of the CGST/KGST Act, 2017, dual/parallel proceedings in relation to the very same subject matter are barred and since the Central GST authorities had already initiated proceedings against the petitioner, the impugned proceedings initiated by the respondents-State GST Authorities are not maintainable and liable to be quashed. In support of its contentions, petitioner places reliance upon the following judgments of this Court.

(i) M/s. Toyota Kirloskar Motor Pvt. Ltd Vs. Union of India and others – 2024 (10) TMI 1240 – Karnataka HC.

(ii) M/s. Huida Sanitaryware India Pvt. Ltd. Vs. Deputy Commissioner of Central Tax – W.P.No.14068/2023 dated 19.09.2024.

(iii) M/s. Toyota Logistics Kishor India Pvt. Ltd. Vs. State of Karnataka and Ors. – 2024 (10) TMI 1384 –Karnataka HC

4. Per contra, learned HCGP for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.

5. Before adverting to the facts of the instant case, it would be necessary to refer to the provisions contained in Section 6 of the CGST/KGST Act, which read as under:

“Section 6 - Authorisation of officers of State tax or Union territory tax as proper officer in certain circumstances. – (1) Without prejudice to the provisions of this Act, the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the proper officers for the purposes of this Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notific