State GST Proceedings Quashed Due to Prior CGST Action

Case Details

• Case Title: M/s Bio Veda Action Research Company v. Union of India & Others

• Court: High Court of Judicature at Allahabad (Chief Justice’s Court)

• Petition No.: Writ Tax No. 1861 of 2024

• Neutral Citation: 2024:AHC:191892-DB

• Date of Judgment: 06.12.2024

• Category of Dispute: Jurisdiction – Dual Proceedings under GST

• Relevant Sections: Section 6(2)(b), CGST Act, 2017; Rule 142 & DRC-07 issuance

Facts of the Case

1. The petitioner challenged an order dated 25.08.2024 issued by the State GST authorities in Form DRC-07 on the same subject matter for which CGST authorities had already issued a show cause notice dated 02.06.2022 (Para 1–2).

2. Petitioner raised objection regarding lack of jurisdiction under Section 6(2)(b) of the CGST Act, 2017 on 22.08.2024, but the State authorities ignored the objection and proceeded to pass the order (Para 2).

3. The Court noted that hearing before CGST authorities had already taken place, and State GST authorities’ action was overlapping (Para 6).

Question in Consideration

• Whether the State GST authorities could validly proceed with adjudication when the CGST authorities had already initiated proceedings on the same subject matter? (Para 2).

Observations of the Court

1. The Court recorded the submission of the State GST counsel that the notice was indeed issued subsequent to CGST proceedings and that the State was willing to withdraw it or have it set aside (Para 4).

2. The Court observed that once CGST had initiated proceedings, State GST had no jurisdiction to issue a parallel notice under Section 6(2)(b) of the CGST Act (Para 7).

3. Counsel for CGST confirmed that proceedings before them were already in progress (Para 5).

Judgment of the Court

• The High Court allowed the writ petition, quashed and set aside the State GST order dated 25.08.2024 and directed that CGST authorities may continue proceedings in accordance with law (Para 7).

Between Fine Lines (Simple Summary)

• Both State and Central GST cannot pursue the same issue simultaneously.

• CGST issued notice first; hence, State GST had no jurisdiction.

• Section 6(2)(b) of CGST Act bars parallel proceedings.

• The impugned State GST order was quashed.

• CGST proceedings will continue as per law.

Summary of Referred Cases

No external case law was referred to in the judgment.

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