where one proper officer under the State GST has initiated any proceedings on a subject matter, no proceedings shall be initiated by another proper officer under Central for recovery of the interest on delayed payment of tax
Section 73 of the CGST Act, 2017— Issue of Show Cause Notice—Parallel investigation by State and Centre GST – The petitioner challenged the show cause notice dated 21.07.2020 and recovery notices dated 18.09.2019. The petitioner counsel submitted that the respondent No.6 has already initiated the proceedings for recovery of interest on delayed payment under Section 50 vide two orders dated 25.05.2019. The petitioner has filed two separate appeals against the said orders before the appellate authority, but during pendency of the said two appeals, the respondent No.2 has issued the impugned SCN dated 21.07.2020 under Section 73(1) covering the same period for the same amount of interest on the delayed payment. The petitioner submitted that in terms of the provisions of clause (b) of Sub-section (2) of Section 6 of the Act, where one proper officer either under the SGST or under the CGST, has initiated any proceedings on a subject matter, no proceedings shall be initiated by another proper officer under this Act on the same subject matter. The counsel for the respondent No.2 submitted that the petitioner may be required to submit reply to the show cause notice and raise these objections before the proper officer.
Held that:- The Hon’ble High Court directed that if the petitioner has not already filed reply to the show cause notice, it would be open for the petitioner to file reply to the impugned show cause notice raising the aforesaid objection. Further directed that the respondent No.2, before proceeding further on the impugned show cause notice, shall first deal with and decide the aforesaid objection of the petitioner in accordance with law.