Maa Jagdambe Engineering Works Vs Commissioner of Trade & Taxes (Delhi High Court)
The petitioner challenged an order dated 18 December 2025 passed by the State GST Authority, which was based on a Demand-cum-Show Cause Notice dated 2 July 2025.
The dispute arose because the CGST Authority had earlier issued a Show Cause Notice dated 28 June 2025 covering 17 entities. Out of these, nine entities overlapped with those in respect of which the State GST Authority proceeded to assess the petitioner’s tax liability. Since the CGST Authority’s notice was issued prior to the State GST Authority’s notice, the petitioner objected to the continuation of proceedings by the State GST Authority, relying on the statutory mandate under Section 6 of the CGST Act.
Despite this objection, the State GST Authority passed the impugned order on 18 December 2025. The petitioner contended that once the CGST Authority had initiated proceedings through its Show Cause Notice dated 28 June 2025, and the petitioner had specifically objected to parallel proceedings before the State GST Authority, the latter ought not to have proceeded further in view of the statutory embargo under Section 6 of the CGST Act. The petitioner also argued that the impugned order was without jurisdiction because proceedings under Section 74 of the CGST Act had already been initiated by the CGST Authority for the financial years 2020-21, 2021-22, and 2022-23.
