M/S Aamir And Sons vs. Commissioner Commerical Tax And 2 Others
Held
The Court held that a single transaction can give rise to both criminal and civil consequences, and the pendency of criminal proceedings does not warrant interference with parallel proceedings under Section 74 of the CGST Act. Both proceedings can continue simultaneously.
Facts
The petitioner sought to quash a show cause notice issued under Section 74 of the CGST Act, arguing that parallel criminal prosecution under Section 132(1)(c) of the same Act should prevent it. The petitioner relied on a Telangana High Court decision where similar parallel proceedings were questioned.
Key Issues
Can parallel proceedings under Section 74 of the CGST Act continue when criminal prosecution under Section 132(1)(c) of the same Act is also pending for the same transaction?
Sections Cited
Section 74, Section 132(1)(c), Section 122, Section 50(3), Section 20
AI-generated summary — verify with the full judgment below
Court No. - 21 Case :- WRIT TAX No. - 910 of 2021 Petitioner :- M/S Aamir And Sons Respondent :- Commissioner Commerical Tax And 2 Others Counsel for Petitioner :- P.H. Vashishtha,Pooja Talwar Counsel for Respondent :- C.S.C. Hon'ble Naheed Ara Moonis,J. Hon'ble Saumitra Dayal Singh,J.
Heard Ms Pooja Talwar and Mr P.H. Vashishtha, learned counsel for the petitioner and Mr Parv Agarwal, learned counsel for the respondent.
Present petition has been filed for the following relief: "(a) issue a writ, order or direction in the nature of Certiorari quashing the impugned show cause notice dated 03.06.2021 issued by the respondent nos.2 Assistant Commissioner, Central GST, Meerut, for the Financial Year August 2018 and September 2018 under Section 74 of the Central Goods and Services Tax Act, 2017 (Annexure -7 to the writ petition) and all further proceedings arising there from which are not in conformity in law."
Placing heavy reliance on a division bench decision of the Telangana High Court in M/s Deem Distributors Private Ltd. vs. Union of India & 3 Ors., Writ Petition No. 7063 of 2021, dated 03.08.2021, it has been submitted, in face of the criminal prosecution pending agains
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
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.