M/S Sri Vinayaka Electricals vs. Commercial Tax Officer

Held

The Court held that proceedings initiated by Central GST authorities were invalid due to prior initiation of proceedings by State GST authorities on the same subject matter, as per Section 6(2)(b) of the CGST Act. For the State proceedings, the Court quashed the adjudication orders and garnishee notices, remanding the matter for a fresh hearing, allowing the petitioner to file replies and produce documents, subject to depositing 10% of the demanded tax.

Facts

The petitioner challenged multiple show cause notices, adjudication orders, and garnishee notices issued by both State and Central GST authorities for the same subject matter. The petitioner contended that parallel proceedings by different authorities were impermissible under GST law and that they were denied a personal hearing in the State proceedings.

Key Issues

Whether parallel proceedings by State and Central GST authorities on the same subject matter are permissible, and whether the petitioner was denied a fair opportunity of hearing before adjudication by State authorities.