Krishna Industries Vs Commissioner of Central Goods And Services Tax And Ors. (Delhi High Court)
Parallel GST Proceedings Not Barred Merely Because They Relate to the Same Assessee, Year and ITC Amount-Identity of the Contravention Is Decisive
The Delhi High Court considered whether the Central GST authorities could initiate proceedings under section 74 of the CGST Act when the State GST authorities had already initiated proceedings under section 73 concerning input-tax credit claimed from a supplier bearing the trade name M.R. Enterprises.
The petitioner, a manufacturer of plastic products, had allegedly availed input-tax credit from M.R. Enterprises. For FY 2017-18, the State GST authorities issued a show-cause notice dated 23-09-2023, which included a proposal concerning ITC claimed from the said supplier.
After an earlier round of writ proceedings, the State authority was directed to grant a personal hearing and pass a fresh speaking order. A fresh adjudication order was consequently passed on 29-07-2024.
Thereafter, the Central GST authorities issued two show-cause notices dated 02-08-2024 and 04-08-2024 under section 74. These notices were based on DGGI investigation and alleged that M.R. Enterprises had issued invoices without actual supply of goods and had fraudulently passed inadmissible ITC to various recipients, including the petitioner.
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