GST Update

Desk of CA. Praveen Sharma – 845 Series (CAPS)

Bombay High Court in the case of Ravi Steel Industries

 The petitioner challenged show-cause notices dated 06.08.2024 and 04.10.2023 issued by Central GST authorities, alleging wrongful ITC claims for FY 2017-18 to 2022-23.

 The petitioner argued that for FY 2017-18 and 2018-19, proceedings had already been initiated and adjudicated by State GST authorities, and an appeal is currently pending. Hence, the Central authorities lack jurisdiction under Section 6(2)(b) of the CGST Act.

 Counsel relied on the Supreme Court’s ruling in  which held that once one authority initiates action, the other cannot reopen the same period.

 The Central GST counsel countered that the notices cover a broader period extending beyond those years and that the petitioner had not disclosed the State proceedings earlier.

 It was stated that if the petitioner now provides details of the State adjudication and pending appeals, the Central authority will consider the same before proceeding for overlapping years.

 The Court observed that the jurisdictional objection applies only to 2017-18 and 2018-19, while the remaining years fall outside the State’s earlier action and can be adjudicated independently.

 The petitioner was granted liberty to submit all relevant documents and orders before the Central authorities, who must examine them in light of the Armour Security judgment and decide accordingly.

 The Court disposed of the petition without quashing the notices, directing both sides to act lawfully and fairly, with no order as to costs.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS