"Inquiry" u/s 70 has not been prohibited under Section 6(2)(b) of the CGST Act
Jurisdiction under GST—Section 6, 70 of CGST Act—In the instant case, a survey was conducted by the respondent at the business premises of the petitioner in which no business activity was found. Consequently, the respondent issued a summon to the petitioner under Section 70 of the U.P. GST Act requiring him to submit details of purchases and sales, list of buyers and sellers and certain other documents.
Another respondent issued a summon to the petitioner dated 14.09.2020 under Section 70 of the Act asking him to submit explanation with respect to certain input tax credits taken by him including the input tax credit taken on the basis of invoices M/s Glider Traders Private Ltd., whose registration was cancelled several months prior to the date of the alleged invoice.
Petitioner submitted that Since inquiry has already been initiated by the respondent no.5, therefore, the respondent nos. 3 and 4 cannot initiate any inquiry against the petitioner in view of the provisions of Section 6(2)(b) of U.P. GST Act, 2017.
Proper officer under the U.P.G.S.T. Act or the C.G.S.T. Act may invoke power under Section 70 in any inquiry. Prohibition of Section 6(2)(b) of the C.G.S.T. Act shall come into play only when any proceeding on the same subject-matter has already been initiated by a proper officer under the U.P.G.S.T. Act.
In Section 70 of CGST Act the word “Inquiry” has been used while in Section 6(2)(b) of U.P. GST Act, 2017 the words “ Proceeding” has been used. Thus Section 6 (2)(b) prohibits “Proceeding” and not “Inquiry”. In other words "Inquiry" has not been prohibited under Section 6(2)(b) of the U.P. GST. Act, 2017.