M/S Novitech Health Care Private Limited vs. Commissioner CGST And Central Excise And 5 Others
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The petitioner, M/s Novitech Health Care Private Limited, filed a writ petition challenging a show cause notice dated June 19, 2025, issued by the Commissioner CGST and Central Excise. The petitioner also sought a direction to prevent further proceedings for financial years 2018-19 and 2020-21, arguing that these periods are already under assessment by the U.P. GST. The petitioner contended that the CGST authorities cannot issue show cause notices for the same periods when an assessment is already underway by another authority. The court was informed that a show cause notice had already been issued for both financial years, and the assessment for 2020-21 was being completed by the U.P. GST.
Held
The Court held that since the matter was at the show cause notice stage, the petitioner should apprise the concerned authorities of the ongoing proceedings with the U.P. GST in their reply or objection. The authorities were directed to consider this information in accordance with Section 6(2)(b) of the CGST Act, 2017. The petitioner's time to file their reply/objection was extended until August 7, 2025. The Court explicitly stated that it had not gone into the merits of the case. The ratio decidendi is that at the show cause notice stage, the petitioner has a right to present all relevant facts and legal contentions to the issuing authority, who must then consider them in light of statutory provisions like Section 6(2)(b) before proceeding further. The operative direction was to extend the time for filing the reply and to consider the petitioner's objections.
Key Issues
1. Whether the issuance of a show cause notice by the CGST authorities for financial years 2018-19 and 2020-21 is barred by Section 6(2)(b) of the CGST Act, 2017, given that proceedings for the same periods are already underway with the U.P. GST? Petitioner's Contention: The petitioner argued that since show cause notices for both financial years 2018-19 and 2020-21 have already been issued, and the assessment for 2020-21 is being completed by the U.P. GST, the CGST authorities are precluded from issuing further show cause notices for the same periods under Section 6(2)(b) of the CGST Act. They relied on the principle that once proceedings are initiated by one authority, another authority cannot initiate parallel proceedings for the same subject matter and period. Respondent's Contention: The judgment does not record any specific arguments made by the respondent authorities.
Sections Cited
Section 6(2)(b)
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2025:AHC:113953-DB Court No. - 3 Case :- WRIT TAX No. - 3139 of 2025 Petitioner :- M/S Novitech Health Care Private Limited Respondent :- Commissioner Cgst And Central Excise And 5 Others Counsel for Petitioner :- Harshit Singh,Shrey Singh Counsel for Respondent :- A.S.G.I.,Parv Agarwal Hon'ble Shekhar B. Saraf,J. Hon'ble Praveen Kumar Giri,J.
Heard learned counsel for the parties.
The present writ petition under Article 226 of the Constitution of India has been filed by the petitioner seeking the following reliefs:
"
Issue a writ in the nature of Certiorari or any other appropriate writ, direction or order thereby quashing the impugned Show Cause Notice dated 19.06.2025 bearing DIN 20250653ZX0000001E08 in F. No IV-CGST(9)AE/Agra/NHC/94/2024. 2. Issue a writ in the nature of Mandamus or any other appropriate writ, direction or order thereby directing the respondent no.2 that subsequent proceedings against the petitioner on the same subject matter for FY2018-19 and 2020-21 is barred by Section 6(2)(b) of CGST Act."
Sri Lokesh Goyal, learned counsel for the petitioner, submits that for the financial years 2018-19 and 2020-21, a show cause notice has already been issued for both the years and the assessment is being completed for the financial year 2020-21 by the U.P. GST. In light of the same, he submits that the CGST cannot issue show cause notices for the same periods. Upon considering the arguments made before us, we are of the view that since the matter is at the show cause notice stage, this information may be apprised by the petitioner to the authorities concerned in his reply/objection and the authorities concerned should consider the same in accordance with section 6(2)(b) of the CGST Act, 2017. Petitioner's time to file reply/objection is extended until August 07, 2025. With the above direction, the writ petition is disposed of. We make it clear that we have not gone into the merits of the case. Order Date :- 15.7.2025 K.K. Maurya (Praveen Kumar Giri, J.) (Shekhar B. Saraf, J.) KAMLESH KUMAR MAURYA High Court of Judicature at Allahabad
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.