M/S. Baazar Style Retail Limited And Anr. vs. Deputy Commissioner Of State Tax, Shibpur Charge, Wbgst And Ors.
Original PDF →Facts
The petitioners, M/s Baazar Style Retail Limited & Anr., challenged a show cause notice dated December 27, 2023, issued under Section 73 of the WBGST Act, 2017, and the subsequent adjudication order dated April 27, 2024. These actions by the State authorities pertained to the tax period April 2018 to March 2019. The petitioners contended that the Central authorities had already initiated proceedings for the same tax period and subject matter by issuing a show cause-cum-demand notice on September 30, 2022, in which they had participated. The State's show cause notice and adjudication order were issued in a composite manner.
Held
The Court held that the show cause notice dated December 27, 2023, and the adjudication order dated April 27, 2024, including the demand issued, passed by the State authorities under the WBGST Act, 2017, could not be sustained. The Court's reasoning was based on the provisions of Section 6(2)(b) of the said Act, which implies that once proceedings are initiated by one tax authority (Central or State), the other authority should not proceed on the same subject matter. Since the Central authorities had already issued a show cause-cum-demand notice on September 30, 2022, for the same subject matter, the subsequent notice and order by the State authorities were quashed. However, the Court clarified that this order would not prevent the State authorities from proceeding against the petitioners for periods covered by the State's show cause notice, provided such periods do not concern the same subject matter as that covered by the Central authorities' notice.
Key Issues
1. Whether the show cause notice dated December 27, 2023, and the adjudication order dated April 27, 2024, issued by the State authorities under Section 73 of the WBGST Act, 2017, are sustainable when the Central authorities had previously initiated proceedings for the same tax period and subject matter by issuing a show cause-cum-demand notice dated September 30, 2022. Petitioner's contention: The State authorities' actions are unsustainable due to the prior initiation of proceedings by the Central authorities for the same period and subject matter, invoking the principle of Section 6(2)(b) of the said Act, which prevents parallel proceedings on the same subject matter. Revenue/State's contention: The judgment does not record any specific contention from the State or Revenue regarding this issue.
Sections Cited
Section 73, Section 73(9), Section 6(2)(b)
AI-generated summary — verify with the full judgment below
2024 Item No. AD 8 Saswata
W.P.A. 16185 of 2024 M/s Baazar Style Retail Limited & Anr. versus Deputy Commissioner of State Tax, Shibpur Charge & Ors. Mr. Ankit Kanodia Ms. Megha Agarwal Mr. Piyush Khaitan …For the petitioners Mr. Anirban Ray, Ld. GP Mr. Md. T.M.Siddiqui Mr. Tanoy Chakraborty Mr. D.Sahu …For the State Mr. U.S.Bhattacharya Mr. Tapan Bhanja …For the DGGSTI
The present writ petition has been filed, inter alia, challenging the show cause notice issued in Form GST DRC – 01 dated 27th December 2023 for the tax period from April 2018 to March 2019 under Section 73 of the WBGST Act 2017 (hereinafter referred to as the “said Act”) and the adjudication order passed under Section 73(9) of the said Act dated 27th April 2024, including the demand issued in Form GST DRC – 07 of even date, on the ground that the Central authorities had previously, in respect of the self same tax period and subject matter, initiated a proceeding by issuing a show cause- cum- demand notice dated 30th September 2022 and that the petitioners have duly participated in the said proceeding.
Having heard the learned advocates appearing for the respective parties and taking note of the provisions of Section 6(2)(b) of the said Act and since a show cause-cum- demand notice has already been issued on 30th September 2022 in respect of the period from March 2019 to May 2019 by the Central authorities and since, the show cause notice issued by the State authorities on 27th December 2023 in Form GST DRC – 01 is covering the same subject matter though partially, and the show cause notice dated 27th December 2023 and the order dated 27th April 2024 having
2 been issued in a composite manner, I am of the view that the show cause notice dated 27th December 2023, inter alia, including the order dated 27th April 2024 and the demand made in Form GST DRC – 07 of even dated by the State authorities under the said Act, cannot be sustained and the same are hereby set aside and quashed.
The aforesaid order shall not, however, stand in the way of the State authorities from proceeding against the petitioners in respect of the period which is covered in the show cause-cum-demand notice dated 27th December, 2023 provided the same does not concern the same subject matter as covered by the show cause – cum – demand noticed dated 30th September, 2022 issued by the Central authorities.
With the above observations and directions, the writ petition being WPA 16185 of 2024 is accordingly disposed of.
There shall be no order as to costs.
All parties shall act on the basis of the server copy of this order duly downloaded from this Court’s official website. (Raja Basu Chowdhury, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.