DRJ Petrochem (P.) Ltd. Vs Sales Tax Officer (Delhi High Court)
The Delhi High Court addressed a petition filed by DRJ Petrochem (P.) Ltd. challenging a Show Cause Notice (SCN) issued by the State Goods & Services Tax authority under Section 73 of the Central Goods & Services Tax Act, 2017. The petitioner’s primary objection was that the same tax period was already under investigation and adjudication by the Directorate General of GST Investigation (DGGI) in Chandigarh, which had also issued an SCN. The petitioner argued that parallel proceedings by the state authority were unwarranted and potentially conflicting.
In light of a precedent set in the case of DLF Home Developers Limited, where the court addressed similar issues of overlapping jurisdiction, the respondent’s counsel stated that no further steps would be taken concerning the challenged SCN. This commitment was made contingent upon the outcome of the DGGI proceedings. The court recorded and accepted this statement, effectively staying the state GST proceedings until the DGGI concludes its investigation and adjudication. Consequently, the court disposed of the writ petition, ensuring that DRJ Petrochem would not face coercive action from the state authority while the DGGI proceedings were ongoing. This decision prevents potential conflicts and ensures a singular, coherent resolution to the tax period under scrutiny.
