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Inquiry

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Inquiry

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  1. “Inquiry” under section 70 and “Proceedings” the section 6(2) are different

  2. Brief Facts of the Case • M/s G. K. Trading Company (“The Petitioner”) is registered under U.P. GST Act 2017 w.e.f. 01 November 2017 for trade in Iron Bars and Rods and Non-Alloy steel etc.  • Respondent No. 5-Assistant Commissioner (S.I.B.), UP,  issued a summon to the petitioner under Section 70 of UP GST Act requiring him to submit details of purchases and sales, list of buyers and sellers and certain other documents.  • Later on, the Directorate General of Goods and Services Tax Intelligence issued a summon to the petitioner under section 70 and 174 of the CGST Act, 2017 requiring the petitioner to appear in person.

  3. Contention of Respondent • The respondent contended that: • Section 6(2)(b) of U.P. GST Act, 2017 prohibits initiation of a proceeding on the same set of facts. It does not prohibit inquiry by the authorities under U.P. Act or under Central Act. • Further, under Section 70 of CGST Act, the word “Inquiry” has been used. Whereas, Section 6(2)(b) of UP GST Act prohibits “Proceeding” and not “Inquiry”. In other words “Inquiry” has not been prohibited under Section 6(2)(b) of the U.P. GST. Act, 2017. • Jurisdiction of state authorities is limited to UP only. Whereas, jurisdiction of centre authorities is expanded to the whole India. • Further, state authorities have issued the notice on the basis of facts that the Input Tax Credit has been illegally taken by the petitioner on the basis of invoices of two alleged dealers. However, no such fact is mentioned in the summons issued by centre authorities. Therefore inquiry has not been initiated on the same set of facts

  4. Legal Extracts • Provisions of UP GST and CGST is almost parimateria. Relevant extract of UPGST Act and CGST Act is given below: • Section 6(2) of UP GST Act:: • Section 6 (2) Subject to the conditions specified in the notification issued under sub-section (1),- • .. • (b) where a proper officer under the Central Goods and Services Tax Act,2017 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. Chapter XIV (Inspection, Search, Seizure and arrest) Section 67. Power of inspection, search and seizure- (1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to believe that–– • ,,,,:

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