Prime Steel Industries Pvt. Ltd. Vs State of H.P and another (Himachal Pradesh High Court)
Himachal Pradesh High Court has disposed of a petition filed by Prime Steel Industries Pvt. Ltd., which challenged the initiation of parallel proceedings by two different authorities under the Central Goods and Services Tax Act, 2017. The petitioner was aggrieved by summons issued by the Senior Intelligence Officer, DGGI, Meerut Zonal Unit (Respondent No. 2), and the subsequent blocking of its credit ledger on the GST Portal, while the Assistant Commissioner State Taxes and Excise (Respondent No. 1) had already initiated proceedings.
Prime Steel had sought to quash the summons and the blocking of its credit ledger, arguing that these actions were without jurisdiction and violated Section 6(2)(b) of the CGST Act, which generally prohibits proceedings on the same subject matter by different authorities.
During the court proceedings, Respondent No. 1, the Assistant Commissioner, submitted an affidavit stating that they had initiated proceedings against the petitioner earlier and that the petitioner had already submitted a reply in August 2021. They requested to conclude their ongoing proceedings.
Crucially, the High Court noted a letter dated April 24, 2025, confirming that Respondent No. 2, the Senior Intelligence Officer, DGGI, had now transferred its proceedings concerning Prime Steel Industries Pvt. Ltd. to Respondent No. 1. This transfer effectively resolved the issue of parallel proceedings.
