Case Law Details
G.K. Trading Company Vs Union Of India And 4 Others (Allahabad High Court)
Conclusion: GST authorities are allowed to initiate inquiry proceedings under Section 70 of CGST Act, 2017 collaterally with the proceedings under section 6(2)(b) as prohibition of Section 6(2)(b) of the C.G.S.T. Act shall come into play only when any proceeding on the same subject-matter has already been initiated by a proper officer under the U.P.G.S.T. Act and therefore, proper officer under the U.P.G.S.T. Act or the C.G.S.T. Act may invoke power under Section 70 in any inquiry.
Held: The issue arose for consideration was that once inquiry has been initiated under U.P. GST Act, the officer could neither initiate any inquiry nor summon could be issued under Section 70 of the CGST Act against assessee in view of the provisions of Section 6 (2) (b) of U.P. GST Act, 2017. It was held that the word “inquiry” in Section 70 has a special connotation and a specific purpose to summon any person whose attendance may be considered necessary by the proper officer either to give evidence or to produce a document or any other thing. The process of inquiry under Section 70 is specific and unified by the very purpose for which provisions of Chapter XIV of the Act confers power upon the proper officer to hold inquiry. The word “inquiry” in Section 70 is not synonymous with the word “proceedings”, in Section 6(2)(b) of the U.P.G.S.T. Act/ C.G.S.T. Act. The words “any proceeding” on the same “subject-matter” used in Section 6(2)(b), which is subject to conditions specified in the notification issued under sub-Section (1); means any proceeding on the same cause of action and for the same dispute involving some adjudication proceedings which may include assessment proceedings, proceedings for penalties etc., proceedings for demands and recovery under Section 73 and 74 etc. Section 6(2)(b) of the C.G.S.T. Act prohibits a proper officer under the Act to initiate any proceeding on a subject-matter where on the same subject-matter proceeding by a proper officer under the U.P.G.S.T. Act has been initiated. There was no proceeding by a proper officer against assessee on the same subject-matter referable to Section 6(2)(b). It was merely an inquiry by a proper officer under Section 70 of the C.G.S.T. Act.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. Heard Sri Praveen Kumar, learned counsel for the petitioner and Sri C. B. Tripathi, learned special counsel for the Union of India.
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