Tag: parallel proceeding

ArticleGST Article

Whether Subject matter of the State GST proceedings and Central GST proceedings are identical involves factual examination and is not a pure question of law

byCA Bimal Jain

The Hon’ble Allahabad High Court in the case of M/S Meerut Steels held that the question of jurisdictional overlap in parallel proceedings under Central GST and State GST Acts is not a pure question of law but involves factual adjudication, and therefore the writ petition challenging the Central GST order before the High Court is not maintainable. The Petitioner may raise the issue through statutory appeal.

ArticleGST Article

Supreme Court’s Judgment on Section 6(2)(b) of the CGST Act w.r.t ‘Parallel Proceedings’, ‘Same Subject Matter’ and ‘Summons’

byCA Bimal Jain

The Supreme Court of India, in a landmark judgment delivered on August 14, 2025, in the case of M/s Armour Security (India) Ltd. v. has provided crucial clarity on the interpretation of Section 6(2)(b) of the CGST Act”. This ruling addresses the persistent ambiguity surrounding the “initiation of proceedings” and “same subject matter” in the context of parallel investigations and/ or proceedings by the Central and State tax authorities. The Court dismissed the Special Leave Petition, upholding the High Court’s decision not to interfere with summons issued under Section 70 of the CGST Act.

GST ArticleHigh Court

Whether CGST department can conduct the audit after the State Authority has conducted proceedings for the same period?

byCA Ritesh Arora

Yes, the Honorable Madras High Court in the case of P S K Engineering Construction & Co. v. Assistant Commissioner of GST & Central Excise [Writ Petition No. 13418 of 2024 dated June 10, 2024] held that there is no restriction in statute for Central GST authorities to initiate proceedings on different subject matter that it is already adjudicated by State Authorities. The Honorable Madras High Court noted that on perusal of the Impugned Notice, it is clear that such notice was issued while being fully aware of Section 6(2)(b) of the CGST Act. However, there is no restriction to initiate any proceedings on any other subject matter by the Central Tax Authority.

Lawgics

Lawgics – Judgment No. 178

byNidhi Aggarwal

Section 6(2)(b) prohibits the initiation of parallel proceedings by State and Central authorities on the same subject matter.

Once a proceeding is initiated by State Tax Authority, the DGGI cannot initiate parallel proceedings on the same subject matter i.e. regarding the same supplier.