State GST Department not empowered to initiate proceedings when Central GST Department has already initiated the proceedings on same subject matter

The Hon'ble Calcutta High Court in the case of Baazar Style Retail Ltd. v. Deputy Commissioner of State Tax [W.P.A. No. 16185 of 2024 dated August 19, 2024] set aside the order and notice issued by the State GST Department when proceedings have already been initiated by the Central GST Department by relying upon the provision of Section 6(2)(b) of the West Bengal Goods and Services Tax Act, 2017 ("the WBGST Act").

Facts:

Baazar Style Retail Ltd. ("the Petitioner") filed a writ petition wherein the Show cause Notice dated December 27, 2023 ("the Impugned Notice") issued for the period of FY 2018-2019 issued under Section 73 of the WBGST Act along with order dated April 27, 2024 ("the Impugned Order") passed under Section 73(9) of the WBGST Act, by the State Revenue Department ("the Respondent") was challenged on the ground that the Central GST Department had previously initiated the proceeding on the same subject matter by issuance of show cause-cum-demand notice in which the Petitioner has duly participated.

Issue:

Whether State GST Department empowered to initiate proceedings when Central GST Department has already initiated the proceedings on same subject matter?

Held:

The Hon'ble Calcutta High Court in the case of W.P.A No. 16185 of 2024 held as under:

• Observed that, Section 6(2)(b) of the WBGST Act has to be taken into consideration which clearly states that "where a proper officer under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this Act on the same subject matter"
• Noted that, in the present case, the SCN has already been issued by the Central GST Department before the initiation of proceedings by the Respondent by issuance of the Impugned Notice and Order.
• Opined that, the Impugned Notice and Order therefore, are not maintainable taking into consideration the aforesaid provisions.
• Held that, the Impugned Notice and Orders are set aide, and writ petition is disposed of.

OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED