HM Leisure Vs Assistant Commissioner of CGST (Bombay High Court, Goa Bench)
Multiple SCNs by different authorities on same issue and for same period create chaos and harassment – Bombay HC Quashes Duplicative GST Notice
The Hon’ble Bombay High Court in HM Leisure vs Assistant Commissioner of CGST of CGST, Div. – 1 & 2 Ors. [Writ Petition No. 236 of 2025 dated July 28, 2025] held that issuing multiple show cause notices by different authorities on the same subject matter and period creates chaos, harassment, and conflicting decisions, and quashed the order-in-original passed by the Deputy Commissioner, CGST, Goa, as it duplicated proceedings already initiated by the DGGI, Mumbai on an all-India basis.
Facts:
HM Leisure (“the Petitioner”), a partnership firm providing sporting facilities (bowling) and video game services, with its head office in Bangalore and a branch in Goa, registered under the GST Act.
Assistant Commissioner of CGST, Div. – 1 & 2, Goa, and others (“the Respondent”) issued a show cause notice (“the SCN”) dated April 18, 2022, proposing a tax demand of Rs.67,50,522/- on video gaming and bowling services at 18%, along with interest and penalty. The Respondent passed an order-in-original dated January 30, 2025, confirming the demand.
The Petitioner contended that video game services are taxable at 18%, bowling services are exempt, and shoe usage charges are taxable at 5%, as per CBIC Circular dated October 6, 2021. They argued that the DGGI, Mumbai, had initiated an all-India investigation, including the Goa branch, via an SCN dated August 3, 2024, which was stayed by the Karnataka High Court, and requested that the Goa proceedings be transferred to DGGI or kept in abeyance.
The Respondent contended that the order dated January 30, 2025, was well-reasoned, complied with natural justice, and addressed additional issues (excess Input Tax Credit and differential tax liability on amusement facilities) not covered in the DGGI’s SCN, thus justifying their adjudication.
The Petitioner approached the Bombay High Court through Writ Petition seeking to quash the order-in-original and related Form DRC-07, arguing that the Respondent’s actions violated Section 6(2) of the CGST Act by causing duplicative proceedings and jurisdictional conflict.
Issue:
Whether the issuance of multiple show cause notices by different authorities (DGGI, Mumbai, and Deputy Commissioner, CGST, Goa) on the same subject matter and period is legally permissible?
Held:
The Hon’ble Bombay High Court in Writ Petition No. 236 of 2025 held as under:
