Case Law Details
Subhash Agarwalla Vs State of Assam And 4 Ors (Guwahati High Court)
Introduction: In a significant judgment, the Guwahati High Court, in the case of Subhash Agarwalla Vs State of Assam And 4 Ors, has addressed a crucial issue concerning the Central Goods and Services Tax (CGST) and the State Goods and Services Tax (SGST) Acts. The court deliberated on whether two parallel proceedings under the CGST and SGST Acts for the same period are permissible, offering a clear interpretation of the legal provisions.
Detailed Analysis: The petitioner, Subhash Agarwalla, was subjected to two demand-cum-show cause notices; one under the SGST Act and another under the CGST Act for the financial year 2017-2018. Both notices questioned the Input Tax Credit (ITC) availed and utilized by the petitioner, alleging it was inadmissible as per Section 16(4) of both Acts. Following these notices, orders-in-original were passed by the respective authorities under the CGST and SGST Acts.
The petitioner’s main contention was based on Section 6 of both the CGST and SGST Acts, which essentially precludes the initiation of parallel proceedings for the same period under both acts. This provision aims to avoid duplicity and ensure that the assessee is not penalized or troubled for the same transaction under both jurisdictions.
The Guwahati High Court, upon reviewing the matter, highlighted the importance of Section 6 in maintaining procedural coherence between the CGST and SGST Acts. The court’s interim order suspended the operation of the order-in-original issued under the SGST Act, thereby granting temporary relief to the petitioner until a detailed examination on the returnable date.
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