The idea of Goods and Services Tax Act based upon the principle “One Nation, One Tax” which means that the tax payer shall be levied a single tax instead of other different taxes prevailing in earlier regime. With this idea in mind, the legislature has inserted section 6 under the Act whereby the authorization of officers of State Tax or Union Territory tax as proper officers in certain circumstances were determined. The said section states as under:
Authorisation of officers of central tax as proper officer in certain circumstances:
- Without prejudice to the provisions of this Act, the officers appointed under the State Goods and Services Tax Act 2017 or Union Territory Goods and Services Tax Act are authorized to be the proper officers for the purposes of this Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify.
- Subject to the conditions specified in the notification issued under sub-section (1),
–(a)where any proper officer issues an order under this Act, he shall also issue an order under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as authorised by the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, under intimation to the jurisdictional officer of State Tax or Union territory tax;
(b)where a proper officer under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this Act on the same subject matter.
(3) Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under this Act, shall not lie before an officer appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.
The above section has clearly authorized the officers of State GST as Proper Officers for the efficient implementation of the Act subject to such conditions as shall be notified by the Central Government on recommendations of the Council however, sub section (2) has limited some powers with regard to parallel proceedings by both the authorities at Central or State Level.
Sub section (2) of section 6 states that if a jurisdictions officer has proceeded with a case under CGST Act, the same period cannot be adjudicated under State or Union Territory Act. Hence, it restricts the parallel proceedings by both the authorities.
Judgments
The Hon’ble High Courts and Apex Court has upheld the validity of this section by way of passing numerous judgments time to time; some of which are as under:
- The Hon’ble Guwahati High Court in the case of Subhash Agarwalla v. State of Assam [Case No. WP(C)/ 683/2024 dated February 12, 2024], held that once a proceeding is initiated under either in Central Goods and Services Tax Act, 2017 (“the CGST Act”) or State Goods and Services Tax Act, 2017 (“the SGST Act”), another proceeding for same period under other Act cannot to be initiated. Therefore, the operation of the Order-in-Original was to remain suspended till the returnable date.
- The Hon’ble Calcutta High Court in the case of M/s R.P. Buildcon Private Limited & Anr. V. The Superintendent, CGST & CX vide WPA 20025 of 2022 has held that the Audit Proceedings under section 65 of the CGST Act, 2017 has already commenced by Audit Commissionerate thus, it is appropriate that the proceedings should be taken to the logical end by Audit Commissionerate itself. It was further concluded that, the proceedings initiated by the Anti Evasion & Range Office for the very same period shall not be proceeded with any further.