There cannot be two parallel investigations under State Act as well as Central Act

Sureshbhai Gadhecha Vs State of Gujarat (Gujarat High Court)

There cannot be two parallel investigations under the State Act as well as the Central Act.

As per clause (b) of sub-section (2) of section 6 of the Goods and Services Tax Act, it was  provides that where a proper officer under Central Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under that Act on the same subject matter.

Further, reference was made to the D.O.F. No.CBEC/20/43/01/2017-GST (Pt.) dated 5.10.2018 issued by the Central Board of Indirect Taxes and Customs, wherein it has been clarified that if an officer of the Central tax authority initiates intelligence based enforcement action against a taxpayer administratively assigned to State tax authority, the officers of the Central tax authority would not transfer the said case to its State tax counterpart and would themselves take the case to its logical conclusions.

FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT

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