State Authority cannot restrain Central Authority from issuing GST Summons: HC

Case Details: Kuppan Gounder P.G. Natarajan v. Directorate General of GST Intelligence, New Delhi - [2021] 129 taxmann.com 427 (Madras)

Judiciary and Counsel Details

• • S.M. Subramaniam, J.
  • E. Om Prakash, Sr. Counsel and L. Narasimha Varman for the Petitioner.
  •  V. Sundareswaran, Sr. Panel Counsel for the Respondent.

Facts of the Case

The Central GST Authority issued summon to assessee stating that an enquiry was conducted in connection with assessee’s company under CGST and directed him to give evidences or produce documents in his possession or under his control. The assessee filed writ petition for quashing impugned summons. The assessee submitted that after some scrutiny State Authority had already issued to him a notice intimating discrepancies in return and proceedings were in progress. It was argued that the Central Authority was bound to wait till conclusion of proceedings initiated by State Authority and thus summon issued by Central Authority was without jurisdiction.

High Court Held

The honorable High Court observed that very purpose and object of section 6(2) (b) of CGST Act, 2017 is to ensure that on same subject parallel proceedings are to be avoided. It is to be established that subject matter is one and same and mere pendency of certain proceedings before State Authority could not be a ground to restrain Central Authority from issuing summon and conduct investigation regarding impugned allegations. Therefore, all these factors would require adjudication before the competent authority and if the summons would be kept in abeyance at this stage, the same would cause prejudice to the interest of the Revenue. Therefore, the petition was liable to be dismissed.