In GST litigation, taxpayers often receive notices or enquiries from multiple authorities on the same issue, leading to unnecessary compliance and duplication of proceedings.

In M/s Vardhman Ispat Udhyog vs. Adjudicating Authority-cum-Deputy Commissioner, CGST & Others, the Himachal Pradesh High Court, relying on the Supreme Court's landmark decision in Armour Security (India) Ltd., reiterated that parallel proceedings on the same subject matter are not permissible.

In this case, the taxpayer received communications from different GST authorities regarding alleged fake ITC, followed by a Show Cause Notice on the same issue. The Court held that formal proceedings commence only with the issuance of a Show Cause Notice, not with summons or preliminary enquiries. Once a Show Cause Notice has been issued, that authority should continue with the adjudication, while all other authorities must forward any relevant material to it instead of initiating parallel proceedings.

Key Takeaway for Taxpayers

If you receive notices or enquiries from multiple GST authorities on the same issue, immediately inform the subsequent authority that the matter is already pending elsewhere. This judgment provides strong legal support against duplicate proceedings and reinforces the protection available under Section 6(2)(b) of the CGST Act.

This decision is another significant step towards ensuring a fair, coordinated and taxpayer-friendly GST administration.