State GST authorities had initiated proceedings under Section 74 against a works contractor for wrongful ITC on the same invoices and periods. As a result, Section 6(2)(b) barred parallel action by the Central GST authorities on the identical subject matter, rendering the Central SCN, OIO, and DRC-07s invalid and inoperative, and all such proceedings were quashed. { Tansam Engineering and Construction Company vs. Commissioner, CGST and Central Excise, Rourkela [2025] 179 taxmann.com 375 (Orissa)}
Facts:
The State GST department initiated proceedings under Section 74 against the petitioner, a works contractor, for wrongful availment of ITC on specific invoices and periods. Subsequently, the Central GST authorities issued show cause notices and passed orders on the identical transactions, leading to parallel proceedings.
Issue:
Whether the Central GST authorities could initiate proceedings under Section 74 on the same invoices and tax period when the State GST authorities had already initiated proceedings for the same subject matter.
Held:
The High Court held that, under Section 6(2)(b) of the CGST Act, once the State authorities had initiated proceedings on the same subject matter, the Central authorities were barred from doing so. Therefore, the Central SCN, OIO, and DRC-07s were invalid and quashed.
