Enquiries by Central Authority under GST cannot be restricted due to pendency of proceedings before the State Authority

Last updated: 12 August 2021

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Quick Summary

The Madras High Court has ruled that the pendency of proceedings before a State Authority does not prevent the Central Authority from issuing summons and conducting investigations under the GST Act. The court clarified that simply because a State authority has started proceedings, it does not automatically restrict the Central authorities. While the High Court cannot delve into the detailed intricacies of a case, it granted the petitioner liberty to respond to the summons and present evidence.

Court :
Madras High Court

Brief :
In KuppanGounder P.G. Natarajan v. Directorate General of GST Intelligence and others [TS-400-HC(MAD)-2021-GST decided on July 29, 2021], KuppanGounder P.G. Natarajan ('the Petitioner';) filed a writ petition challenging the summons issued by the Directorate General of GST Intelligence ('the Respondents';)u/s 70 of the Central Goods and Services Tax Act, 2017 ('CGST Act';) on the ground that summons by the Revenue were issued while proceedings from a notice on intimation of discrepancies in the return were already initiated by the State Authorities, thereby going against Section 6(2)(b) of the CGST Act.

Citation :
TS-400-HC(MAD)-2021-GST decided on July 29, 2021

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