State GST Authority Can’t Initiate Proceedings If Central GST Authority Issued SCN on Same Matter

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  • Last Updated on 13 November, 2024

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Latest from Taxmann

GST Show Cause Notice

Case Details: Toyota Kirloskar Motor (P.) Ltd. v. Union of India - [2024] 168 taxmann.com 49 (Karnataka)

Judiciary and Counsel Details

  • S.R.Krishna Kumar, J.
  • Ravi Raghavan, Rohan Karia & Nischal K.M., Advs. for the Petitioner.
  • Chandrachud A., Adv., Hema Kumar K., AGA & Jeevan J. Neeralgi, Adv. for the Respondent.

Facts of the Case

The petitioner was engaged in the business of assembly, manufacturing, and trading in multi-utility vehicles and passenger cars in India. The Central GST authorities had already issued SCNs to the petitioner concerning ITC matters on specific dates (August 11, 2022, and September 20, 2022). Subsequently, the State GST authorities issued another SCN regarding the same ITC matter, demanding payment along with interest and penalties.

High Court Held

The petitioner argued that Section 6(2)(b) prohibits the State GST from initiating parallel proceedings if the Central GST authorities have already initiated proceedings on the same subject matter. Therefore, the Court quashed the notice issued by the State GST authorities being without jurisdiction. In the case of the Central GST show cause notice, the matter was remanded for reconsideration in light of Circular No. 211/5/24-GST dated 26.06.2024 and precedent in Bosch Limited case.

List of Cases Reviewed

  • M/s. Bosch Limited v. the State of Karnataka (2024 VIL-828-KAR) – [Para 11] followed.

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