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TMI Blog2023 (10) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... is aggrieved with the notices issued by the 4th respondent, an officer authorized under the Central Goods and Services Tax Act and the notices issued by the 5th respondent, an officer under the State Goods and Services Tax Act produced respectively as Annexures 6 and 5; both of which are summons issued under Section 70 of the State and Central Goods and Services Tax Act, for procuring the presence of the noticee as a witness in the proceedings initiated. 2. The learned counsel for the petitioner specifically placed reliance on Section 6 of the Goods and Services Tax Act before us, to contend that there can be no proceedings initiated and continued simultaneously by the State and Central authorities. A Circular of the CBEC dated 05.10.2018, is also relied upon to further contend that, if a proceeding is initiated by one of the authorities; then the other authority though competent to proceed on investigation should stay its hands, till the first authority, who initiated the proceedings complete that. Reliance is placed on a Division Bench judgment of the High Court of Gujarat dated 04.03.2020, in Ms. Bhawani Textiles Vs. Additional Director General in R/Special Civil Application N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... summons issued by the Deputy Collector of State Tax and another by the DGGI, Surat when actually the DGGI, AZU, had conducted the search operation and issued summons first. The Division Bench directed the DGGI, AZU, to look into the matter and ensure that no harassment is caused to the writ applicant. The Division Bench of the High Court of Delhi in Indo International Tobacco Ltd. (supra) found that the High Court of Gujarat had not expressed any opinion on the merits of the case and had not considered the ambit and scope of the circular dated 05.10.2018. We are in respectful agreement of the observation made by the Division Bench of the High Court of Delhi; that there is no dictum coming out of the decision of the High Court of Gujarat. 6. Indo International Tobacco Ltd. (supra) though relied on the very same circular issued by the CBEC, the High Court of Delhi categorically found that it is not applicable to the facts arising in that case. Especially since, though parallel investigations were initiated, the one initiated by the State Tax Authority was transferred to the Central Tax Authority. Since there was no prohibition for such transfer under the Central Goods and Services T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poses a tax payer in a particular area can be assigned to the Central Tax Officer or State Tax Officer, which assignment is done randomly. Under Section 6(1), cross-empowerment of officers appointed under the State and Central Goods and Services Tax Act is enabled. Under Section 6(1) & (2)(a) of the CGST Act a 'Proper Officer' exercising control over the territory under the State or Union Territory Goods and Services Tax Act (for brevity 'SGST or UGST Act') is also empowered to issue an order under the Central Goods and Services Tax Act (CGST Act). Correspondingly Section 6(1) and (2)(a) of SGST Act and UTGST Act empowers a 'Proper Officer' under the CGST Act to initiate any order under the SGST or UGST Act. Subclause( b) of Section 6(2) of the respective enactments prohibit the 'Proper Officer' under that Act from initiating a proceeding on the same subject matter, if the 'Proper Officer' under the other Act has initiated a proceeding. 9. The Circular dated 05.10.2018 gives effect to the mandate of Section 6 of the Central, State and UT Goods and Services Tax enactments. It makes the mandate of Section 6 applicable to intelligence based enforcement action, clarifying that both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G and the learned Government Advocate in the present case, the investigation is not against the petitioner herein. The investigation by the State Tax Authority in Maharashtra is against one M/s. Vedam Enterprises, who is an assessee within the State of Maharashtra, whose registration has been found to be fictitious. The investigation initiated by the State Tax Authority within Bihar, at Patna is with respect to an assessee M/s. Arti Plastics, who is registered within the State of Bihar. The investigation reveals that both the said assessees, one registered in Maharashtra and the other in Bihar had dealings between themselves, based on which input tax credit was claimed by the assessee in Bihar. M/s. Vedam Enterprises is said to be the supplier and M/s. Arti Plastics, the purchaser and the petitioner herein, the go between. The petitioner has been directed to appear as a witness for which summons had been issued under Section 70 of the respective enactments, by both the authorities. 12. As of now, there is no investigation pending against the petitioner. He is called upon to produce his books of accounts to ascertain his complicity in the transactions between M/s. Vedam Enterprises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action and for the same dispute involving some adjudication proceedings which may include assessment proceedings, proceedings for penalties etc., proceedings for demands and recovery under Sections 73 and 74 etc. 14. We find absolutely no application of the Section 6(2)(b) or the Circular and the petitioner should appear before the respective tax authorities, pursuant to the summons issued under Section 70 of the respective enactments. 14. The petitioner has expressed inability insofar as the illness of his wife, which cannot be a reason, not to appear before the statutory authority, for all times. 15. However, we reckon the apprehension expressed by the learned counsel for the petitioner that in producing documents before both the authorities, if requisitioned, there would be difficulties. Considering the totality of the circumstances we direct the State Tax authority within the State of Maharashtra to issue a notice for appearance some time in the month of December, 2023 and the State Tax Authority in Patna to issue a notice some time in the month of November, 2023. If any documents are requisitioned, the petitioner would be entitled to produce it before the authority, who f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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