2025 (6) TMI 508 - HC - GST

Wrongly availing of Input Tax Credit or availing of excess Input Tax Credit - argument is premised on the basis that the Central Tax Authorities had initiated proceedings under Section 6(2)(b) of the CGST Act 2017 prior to initiation of any proceedings by the State Tax Authorities - HELD THAT - The matter placed on Board on 15th April 2025 under the same caption. We put the parties to notice that notwithstanding the aforesaid the Writ Petition may be disposed off at that stage itself time permitting. In the meanwhile and without prejudice to the rights and contentions of the parties we direct that the impugned order dated 21st November 2023 passed by the State Tax Authorities shall remained stayed until further orders. Stand over to 15th April 2025.

Summary

Summary:The Bombay High Court, before Justices B. P. Colabawalla and Firdosh P. Pooniwalla, considered a petition concerning Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 ("CGST Act"). The petitioner challenged concurrent recovery actions by both State and Central Tax Authorities for the same period and issue-wrongly availing or excess Input Tax Credit. The petitioner relied on Section 6(2)(b) read with the Ministry of Finance Circular dated 5th October 2018, arguing that only the Central Authority was empowered to issue the show cause notice and proceed, noting that the Central Tax Authorities had already passed an order on 31st January 2025. Consequently, the petitioner contended that the State Tax Authorities' order dated 21st November 2023 was invalid and should be set aside.The Court granted an extension for filing amendments and directed the State Tax Authorities to file an affidavit in reply by 15th April 2025. Meanwhile, the Court stayed the impugned State order dated 21st November 2023 "without prejudice to the rights and contentions of the parties" until further orders. The matter was posted for further hearing on 15th April 2025, with a possibility of final disposal then.Key holdings include the recognition of the petitioner's contention on jurisdictional primacy under Section 6(2)(b) CGST Act and the interim stay of the State Authority's order pending further proceedings.