Baazar Style Retail Limited & Anr. Vs Deputy Commissioner of State Tax
Date: August 18, 2024
Subject Matter
State GST Department cannot take action if the Central GST Department has already initiated proceedings on the same matter.
Summary
The case involves a writ petition challenging a show cause notice dated December 27, 2023, issued under Section 73 of the West Bengal Goods and Services Tax (WBGST) Act, 2017, concerning the tax period April 2018 to March 2019. This notice was challenged on the grounds that there had already been a previous show cause and demand notice dated September 30, 2022, which addressed the same tax period and subject matter, to which the petitioners had already responded. After hearing arguments from both sides, the court noted that the show cause notice from the state authorities issued on December 27, 2023, overlaps with the earlier notice from the central authorities and is thus not valid. Consequently, the court quashed the notice and the subsequent adjudication order dated April 27, 2024, along with the demand made in Form GST DRC-07. However, the court clarified that the state authorities are not precluded from taking action concerning the tax period covered by the December 27, 2023 notice, as long as it does not relate to the same subject matter already covered by the September 30, 2022 notice from the central authorities. The writ petition was disposed of without any order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
1. The present writ petition has been filed, inter alia, challenging the show cause notice issued in Form GST DRC – 01 dated 27th December 2023 for the tax period from April 2018 to March 2019 under Section 73 of the WBGST Act 2017 (hereinafter referred to as the “said Act”) and the adjudication order passed under Section 73(9) of the said Act dated 27th April 2024, including the demand issued in Form GST DRC – 07 of even date, on the ground that the Central authorities had previously, in respect of the self same tax period and subject matter, initiated a proceeding by issuing a show cause- cum- demand notice dated 30th September 2022 and that the petitioners have duly participated in the said proceeding.
2. Having heard the learned advocates appearing for the respective parties and taking note of the provisions of Section 6(2)(b) of the said Act and since a show cause-cum-demand notice has already been issued on 30th September 2022 in respect of the period from March 2019 to May 2019 by the Central authorities and since, the show cause notice issued by the State authorities on 27th December 2023 in Form GST DRC – 01 is covering the same subject matter though partially, and the show cause notice dated 27th December 2023 and the order dated 27th April 2024 having been issued in a composite manner, I am of the view that the show cause notice dated 27th December 2023, inter alia, including the order dated 27th April 2024 and the demand made in Form GST DRC – 07 of even dated by the State authorities under the said Act, cannot be sustained and the same are hereby set aside and quashed.
3. The aforesaid order shall not, however, stand in the way of the State authorities from proceeding against the petitioners in respect of the period which is covered in the show cause-cum-demand notice dated 27th December, 2023 provided the same does not concern the same subject matter as covered by the show cause – cum – demand noticed dated 30th September, 2022 issued by the Central authorities.
4. With the above observations and directions, the writ petition being WPA 16185 of 2024 is accordingly disposed of.
5. There shall be no order as to costs.
6. All parties shall act on the basis of the server copy of this order duly downloaded from this Court’s official website.