Al-Tech Engineering And Construction Private Limited Vs Union of India (Karnataka High Court)
Karnataka High Court has delivered a significant verdict quashing parallel Goods and Services Tax (GST) proceedings initiated by both the Deputy Commissioner and the Assistant Commissioner of Commercial Taxes against Al-Tech Engineering And Construction Private Limited for the financial year 2019-20.
Justice S. Sunil Dutt Yadav, presiding over the case, ruled in favor of the petitioner, Al-Tech Engineering, citing the impermissibility of simultaneous proceedings by central and state authorities as outlined in Section 6(2)(b) of the Central Goods and Services Tax (CGST) Act and the Karnataka Goods and Services Tax (KGST) Act.
The petitioner had challenged multiple show-cause notices and subsequent adjudication orders issued by both Respondent No. 5, the Deputy Commissioner of Commercial Taxes (Audit)-5.4, Bengaluru, and Respondent No. 6, the Assistant Commissioner of Commer-cial Taxes. These notices and orders pertained to the same financial year and raised similar contentions against Al-Tech Engineering.
Learned counsel for the petitioner argued that the initiation of dual and parallel proceedings by the two authorities for the same period was a clear violation of the principles enshrined in Section 6(2)(b) of the CGST/KGST Act, which explicitly prohibits such concurrent actions.
