GST update No 308 on parallel proceedings for same period by different wings is not permitted

The issue as regards to simultaneous and parallel proceedings for the same time period under consideration is prone to litigations since long. There had been various cases in practical life wherein the assessees had to face the nightmare of parallel proceedings, the repercussions of which are directly proportionate to hampering of the business activities. Recently, one such issue on same subject matter was reported before Calcutta High Court in the case of M/S R.P. BUILDCON PRIVATE LIMITED & ANR. V/S THE SUPERINTENDENT, CGST & CX. The decision imparted in this case is the subject matter of discussion of our present update.

The petitioner has filed an appeal seeking Writ of Certiorari to quash the notices issued by concerned officers since the same is related to Financial Year 2017-18 to 2019-20 for which audit under Section 65 of CGST Act, 2017 has been conducted. Further, it is argued to declare the scrutiny of returns under Section 61 of CGST Act, 2017 as void, once an audit under Section 65 of the Act has been conducted by department for the same tax period. It was argued that the 4 issues were pointed out for the said tax period out of which two were accepted and necessary tax and penalty were remitted for remaining two issues. The response in this respect was submitted and the matter did not conclude. Meanwhile, the other wings i.e. Anti-evasion wing and Range office proceeded by issuing notices for the very same period for which audit proceedings under Section 65 of the Act has already been commenced.

The counsel of revenue contended to dismiss the petition on the grounds that the proceedings are in the nature of show cause notice. It was further submitted that range officers were not aware of the proceedings initiated by the audit and anti-evasion wing.

The Court observed that different wings of same department are proceeding against the appellant for the same tax period i.e. from Financial Year 2017-18 to 2019-20. The departmental authorities initiated action and issued notice under Section 65 of the Act. The details of the same were also furnished in the notice regarding GST audit. The Court stated that why in the present days of electronic communication, parallel proceedings are conducted by the three wings of the same department for the same tax period. Therefore, it was held that since the audit already commenced, the same should be concluded and the proceedings of anti-evasion wing and range office should not be proceeded further. The petition was allowed and the impugned order was set aside.

The above decision is a favourable decision rendered by the High court providing shelter to the harassed assesses by addressing their concerns of initiation of simultaneous proceedings against the assessee. Recently, even we have come across one issue on similar lines wherein audit as well as anti-evasion wing initiated proceedings pertaining to the same time period. But it was very difficult to make them understand the legal position pronounced by High Court.

The same point of view is upheld by various courts as well, such as Madras High Court in the case of COMMISSIONER OF CUSTOMS, CHENNAI V/s CHEMPLAST SANMAR [W.P. No. 2017 (354) E.L.T. 513 (Mad.)]. It is high time that judicial pronouncements like these should be considered by the subordinate authorities before initiating any proceedings failing which increases the difficulties of the taxpayers manifold as they have to knock the doors of courts for seeking relief.

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GST update No 308 on parallel proceedings for same period by different wings is not permitted

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