GST Parallel Proceedings: Section 6(2)(b) Applies Only to the Same Subject Matter {M/s Ramada Engineering Industry v. Additional Commissioner (Adjudication) & Anr. SLP (C) No. 21470/2026}
Facts
- The taxpayer, Ramada Engineering Industry, faced two GST proceedings.
- Section 73 proceedings were initiated for FY 2019–20 for incorrect declaration of tax liability and excess ITC.
- Subsequently, Section 74 proceedings were initiated for FY 2018–19 alleging wrongful ITC on goods-less invoices issued by a non-existent supplier.
- The taxpayer contended that the second proceeding was barred by Section 6(2)(b) as both proceedings involved ITC
Issue
Whether subsequent proceedings under Section 74 are barred by Section 6(2)(b) merely because earlier proceedings under Section 73 involving ITC had already been initiated for the same taxpayer?
Held
The Delhi High Court held that Section 6(2)(b) bars parallel proceedings only when they concern the same subject matter i.e., the same specific tax liability, arising from the same facts, involving the same contravention and the same assessment period.
Since the two proceedings involved different financial years (2018–19 and 2019–20), different factual foundations and different allegations, the bar under Section 6(2)(b) was not attracted.
