State Authorities cannot issue SCN and pass order thereof when Central Authorities has already initiated the proceedings under GST

The Hon’ble Calcutta High Court in the case of Bazaar Style Retail Limited v. Deputy Commissioner of State Tax [WPA No. 16185 of 2024 dated August 19, 2024] set aside the Order and SCN issued by State Authority when SCN has already been issued by the Central Authorities by relying upon the provision of Section 6(2)(b) of the West Bengal Goods and Services Tax Act, 2017 (“the WBGST Act”).

Facts:

Bazaar Style Retail Limited (“the Petitioner”) filed a writ petition challenging Show Cause Notice dated December 27, 2023 (“State SCN”) issued under Section 73 of the WBGST Act, and adjudication order dated April 27, 2024 (“the Impugned Order”) under Section 73(9) of the WBGST Act, alleging that the Central Authority has previously issued the order in respect of the selfsame tax period and subject matter, initiated a proceeding by issuing the show cum demand notice dated September 30, 2022 (“Central SCN”).

The Petitioner contended that Section 6(2)(b) of the WBGST Act has to be taken into consideration that the despite the Central SCN has already been issued, by the Central Authorities, the State SCN and the Impugned Order was issued by the state authorities.

Held:

The Hon’ble Calcutta High Court in the case of W.P.A. NO. 16185 OF 2024, taking into consideration the submissions made by the Petitioner, opined that the State SCN issued and the Impugned Order passed by the State Authority is not sustainable and is liable to be set aside.

Relevant Provisions:

Section 6(2)(b) of the WBGST Act:

Section 6: Authorisation of officers of central tax as proper officer in certain circumstances.

(2) Subject to the conditions specified in the notification issued under sub-section (1),-

(b) where a proper officer under the Central 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.

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