Dated 26th June, 2024
This Jharkhand High Court's Decision illuminates the complex jurisdictional challenges inherent in tax enforcement, particularly when multiple tax authorities are involved. The court's decision, based on a meticulous examination of statutory provisions and clarifications, underscores the principle of equal jurisdiction between State and Central tax authorities.
The petitioner became ensnared in a web of investigations initiated by multiple tax authorities as the State Goods & Services Tax Department, the Preventive Branch of the Central Goods & Services Tax, and the Directorate General of Goods & Services Tax Intelligence conducted simultaneous proceedings based on allegations of irregularities in availing Input Tax Credit.
Being aggrieved a writ petition was filed by the petitioner seeking a declaration that the authority initiating proceedings first should exclusively conduct the entire investigative process.
The Delhi High Courtwas of the view that when there is no dispute that officers of both the authorities are in the jurisdiction to conduct the investigations, there is no question of cross empowerment. Also the object of Section 6(2)(b) of the CGST Act is to ensure that cross empowerment of officers of central and state tax do not result in the taxpayer being subjected to parallel proceedings but it cannot be said that the provision prescribes for the transfer of investigations or proceedings. Further, it was held that in a case where investigations are commenced separately by two authorities and coincides at somestage, it cannot be implied that two authorities cannot consolidate the same.
Vivek Narsaria Vs State of Jharkhand W.P(T) NO. 4491 of 2023 Amit Gupta Vs. Union of India
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