R.K. Enterprise Vs Union of India & Ors. (Calcutta High Court)
The Hon’ble Calcutta High Court took note of the fact that the Central and State authorities had passed orders on the same subject matter. Though the period could be different, the subject matter was the same. Hence, having regard to the provisions contained in Section 6(2)(b) of the WBGST/CGST Act 2017, granted stay and directed that no coercive steps be taken against the petitioner pursuant to the orders which are impugned in the writ petition.
The petitioner is engaged in the trading of iron and non-alloy steel products. The State Tax authorities (DRI&E) initiated an investigation against the petitioner, alleging that it availed Input Tax Credit (ITC) fraudulently based on invoices from non-existent suppliers. An order of seizure was issued under Section 67(2) of the WBGST Act. The petitioner was served with a show cause notice (SCN) alleging ITC availed on purchases from fictitious suppliers. The Central GST authorities also, based on intelligence, issued show cause notice for the same period on the same issue. Orders came to be passed by both authorities despite specific submission that it is overlapping. The petitioner challenged the parallel proceedings under Section 6(2)(b) of the CGST/WBGST Act, which prohibits multiple proceedings on the same subject matter by different authorities.
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