GST update No 328 on proceedings cannot be initiated by different wings for the same period

GST update No 328 on proceedings cannot be initiated by different wings for the same periodGST update no. 328 on rejection of appeal for not applying revocation

It is well established that the departmental officers under different wings cannot proceed towards initiating proceedings against the taxpayer. For instance, the tax demand cannot be raised by anti-evasion wing as well as GST audit wing simultaneously on the same facts and for the same tax period. However, it seems that this concept is diluted with time and the revenue authorities in the greed of increasing revenue base often issue unnecessary notices which results into harassment of the assesses. One case on similar subject matter travelled before Calcutta High Court in the case of M/S R.P.BUILDCON PRIVATE LIMITED & ANR. V/S THE SUPERINTENDENT, CGST. The decision imparted in this case is subject matter of discussion of our present update.
The appellant filed this appeal and prayed for Writ of Certiorari and Writ of Mandamus and to quash the notices issued by CGST Anti-evasion department for the Financial Year from 2017-18 to 2019-20 for which audit under Section 65 of CGST Act, 2017 has been conducted. It was argued further that the scrutiny of returns under section 61 of CGST Act, 2017 cannot be done once an audit under Section 65 of CGST Act, 2017 has been conducted by department for the same tax period. The Single Bench dismissed the writ petition on the grounds that the proceedings are in nature of show cause notice. Therefore, this writ petition is filed.
The Counsel of the petitioner submitted that 4 issues were pointed out for the said period out of which two issues pointed out by audit department were accepted by the appellant and tax and interest were remitted and for remaining two issues, the response was submitted by the appellant which were not concluded. Meanwhile the other two wings i.e. anti-evasion and range office also proceeded against the appellant by issuing notices for the
same period for which audit was already commenced.
The Counsel of respondent submitted that the three wings of department proceeded against the appellant because the range officer was not aware of the proceedings initiated by audit department and anti-evasion was also not aware of the same.
The Court observed that the three wings of the same department are proceeding against the applicant for the same tax period i.e. Financial Year 2017-18 to 2019-20. Firstly, the audit department had issued notice under section 65 of CGST Act, 2017, the details of which were furnished by the appellant dated 05.01.2022 for conducting GST audit. The Courts stated that it is not clear looking into the present situation as to why in the present days of electronic communication how parallel proceedings can be conducted by three wings of the same department for the same period. Therefore, in case audit is commenced, the same should be concluded first. The proceedings initiated by anti-evasion and range officer for the same period should not be proceeded further. Therefore, the writ petition is allowed and the order passed by Single Bench is set aside. Therefore, it was directed to provide an opportunity of hearing and pass a speaking order within the prescribed time. The second and third respondents are refrained from proceeding further in respect of same period for which already action is started for the Financial Years from 2017 to 2020.
The above favourable decision is a welcoming decision for trade and industry wherein it is upheld that parallel and simultaneous proceedings cannot be initiated against the assessee in respect of same facts and tax period. However, we have come across various situations in practical life wherein the departmental officers do not understand this fact and proceed towards issuing various notices be it audit or be it anti-evasion which increases the burden of the assesses. It is high time these judicial rulings should be followed at the earliest to avoid any further litigations in future.

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GST update No 328 on proceedings cannot be initiated by different wings for the same periodGST update no. 328 on rejection of appeal for not applying revocation

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