Case Details
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Case Title: Niraj Kumar Jaiswal v. Deputy Commissioner of State Tax, Bureau of Investigation (S.B.)/H.Q. & Ors.
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Court: Calcutta High Court
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Petition No.: W.P.A. 13835 of 2024
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Judgment Date: 14 August 2024
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Category of Dispute: Audit Proceedings / Parallel Proceedings
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Relevant Sections: Section 65(6) of CGST Act, 2017; Section 65 of WBGST Act, 2017
Facts (Paras 2–3)
The petitioner challenged the initiation of audit proceedings under Section 65 of the WBGST Act despite the fact that a final audit report under Section 65(6) of the CGST Act had already been issued on 15 April 2024 in Form GST ADT-02. The petitioner argued that once the CGST audit concluded and tax, interest, and penalty for FY 2022–23 were paid, the State authorities could not start a parallel audit for the same period.
Dispute (Paras 3–4)
The petitioner contended that dual proceedings by both CGST and SGST authorities for the same tax period are impermissible. The State countered that while the CGST audit covered FY 2017–18 to 2021–22, their scrutiny concerned FY 2022–23, thereby justifying their continuation of proceedings.
Observations (Para 6)
The Court noted that the final CGST audit report explicitly recorded payment of tax, interest, and penalty for FY 2022–23. Prima facie, this demonstrated that the liability stood discharged and no further proceedings could continue by State authorities for the same period.
Judgment (Paras 6–7)
The Court restrained the State authorities from proceeding further with their communication dated 4 April 2024, holding that parallel proceedings for the same tax period would be unsustainable. The matter was directed to be listed for final disposal in September 2024.
Table of Cases Referred
| Case | Court | Verdict | Relevance |
|---|---|---|---|
| Niraj Kumar Jaiswal v. Deputy Commissioner of State Tax (Present case) | Calcutta HC | Parallel audit barred once CGST final audit report settled liability | Reinforces principle against dual proceedings |
Between Fine Lines
For taxpayers, this decision highlights that once a final CGST audit report has concluded and liabilities are paid, State GST authorities cannot re-initiate a separate audit for the same period. This protects businesses from duplicative proceedings and ensures finality in tax audits.
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