K.T. Saidalavi Vs State Tax Officer (Kerala High Court)
Kerala High Court held that summons issued under section 70 of the CGST/ SGST Act cannot be deemed to be initiation of proceedings for the purpose of Section 6(2)(b) of the CGST/ SGST Act.
Facts- The proper officer under the Central Goods and Services Tax Act had initiated enquiry regarding non-payment of GST and had directed the production of certain records. This was followed by summons issued u/s. 70 of the CGST Act leading to the recording of certain statements. Certain records were also produced before the Central Authority. While matters stood thus the State Authority initiated proceedings u/s. 74 r.w.s. 122(1) of the CGST/SGST Acts.
According to the petitioners in these cases the initiation of proceedings u/s. 74 by the State Authority that culminated in order under that provision cannot be sustained in law in the light of the provisions contained in Section 6 of the CGST/SGST Acts. It is the case of the petitioners that a reading of the provisions contained in Section 6 of the CGST/SGST Acts will indicate that where proceedings have been initiated by one authority, such proceedings shall be continued and culminated by that authority.
