Bio Veda Action Research Company Vs Union of India and 4 others (Allahabad High Court)
The Allahabad High Court quashed a show cause notice and order issued by the State GST authorities against Bio Veda Action Research Company, ruling that they had no jurisdiction since the CGST authorities had already initiated proceedings on the same subject matter. The petitioner challenged the order dated 25.08.2024, arguing that a show cause notice had been issued by CGST authorities on 02.06.2022. Despite raising an objection under Section 6(2)(b) of the CGST Act, 2017, the State GST authorities proceeded to issue another notice on 30.05.2024 and passed an order without considering the petitioner’s jurisdictional objection.
During the hearing, the State GST authorities admitted that their notice was issued after the CGST authorities had already begun proceedings. Acknowledging this, they agreed to withdraw the notice or have it set aside by the court. The High Court, accepting the submission, quashed the impugned order and allowed the CGST authorities to continue their proceedings per the law. This ruling reinforces the jurisdictional separation under the CGST Act, preventing parallel actions by State and Central authorities on the same issue.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
