Central and State Tax Authorities both cannot conduct audit on same subject matter: Section 6(2)(b) of CGST Act violated

By POONAM GANDHI Goods and Services Tax Judiciary September 22, 2025

TaxGuru Citation: 2025 taxguru.in 8296
Case Name: ArcelorMittal Nippon Steel India Private Limited Vs Assistant Commissioner (Madras High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Madras High Court

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ArcelorMittal Nippon Steel India Private Limited Vs Assistant Commissioner (Madras High Court)

Madras High Court held that it is not permissible for Central Tax Authorities to initiate proceedings on same subject matter on which audit already conducted by State Tax Authorities. Accordingly, notice quashed as violative of section 6(2)(b) of the CGST Act, 2017.

Facts- 1^st respondent vide Notice in Form GST ADT-01 dated 07.04.2025, called upon the petitioner to appear in person or through an authorized representative on or before 21.04.2025 and produce the specified details/documents for the period April 2018 to March 2024 as required for conducting GST Audit in accordance with the provisions of Section 65 of the CGST Act, 2017.

Petitioner filed its Reply dated 17.04.2025 along with the aforesaid documents which was received by the 1st respondent on 21.04.2025. In the petitioner’s Reply dated 17.04.2025, it has been clearly stated that the petitioner company is already being audited by the State Tax Authorities and thus, it may not be permissible for the Central Tax Authorities to initiate proceedings on the same subject matter in terms of Section 6(2)(b) of the CGST Act, 2017.

The relief sought in this writ petition is to quash the Notice in Form GST ADT-01 dated 07.04.2025 issued by the 1^st respondent for the period 2018-2019 to 2022-2023.