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TMI Blog2023 (10) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... against the petitioner herein. The investigation by the State Tax Authority in Maharashtra is against one M/s. Vedam Enterprises, who is an assessee within the State of Maharashtra, whose registration has been found to be fictitious. The investigation initiated by the State Tax Authority within Bihar, at Patna is with respect to an assessee M/s. Arti Plastics, who is registered within the State of Bihar. The investigation reveals that both the said assessees, one registered in Maharashtra and the other in Bihar had dealings between themselves, based on which input tax credit was claimed by the assessee in Bihar. There are absolutely no application of the Section 6(2)(b) or the Circular and the petitioner should appear before the respective tax authorities, pursuant to the summons issued under Section 70 of the respective enactments. Considering the totality of the circumstances the State Tax authority within the State of Maharashtra are directed to issue a notice for appearance some time in the month of December, 2023 and the State Tax Authority in Patna to issue a notice some time in the month of November, 2023. If any documents are requisitioned, the petitioner would be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be termed stricto sensu a proceeding for investigation. It is the contention of the learned Additional Solicitor General that the reference to M/s. Vedam Entrerprise an assessee under the Maharashtra Goods and Services Tax Act, 2017, specifically indicates that the proceedings for investigation is against that assessee and the petitioner has been summoned only as a witness. One M/s. Arti Plastics, an assessee under the Bihar State Goods and Services Tax Act is said to have purchased goods from M/s. Vedam Enterprises. M/s. Vedam Enterprises was revealed to be a fictitious entity, when the person whose credentials were produced for registration, had distanced himself from the said firm, alleging fraudulent registration in his name. The petitioner herein was found to be the go between in the transactions between the two entities, one registered in Maharashtra, M/s. Vedam Enterprises and the other in Bihar, M/s. Arti Plastics. The investigation proceedings initiated by the State Taxes Authority in Maharashtra is against M/s. Vedam Enterprises registered in Maharashtra. The investigation initiated by the Central Tax Authority within Bihar is against M/s. Arti Plastics, the assessee r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t into force, it was found that power was conferred for inspection, search, seizure (under Section 67) investigation and determination of non-payment or short-payment of tax and erroneous claims of input tax credit, by reason of fraud, willful misstatement or suppression of facts (under Section 74) and even otherwise under Section 73. The power was conferred on the Proper Officer by the State and Central Goods and Services Tax enactments. The Proper Officer is defined under Section 2(91) of the Central and State Goods and Services Tax Act as the officer respectively of the Central Tax and the State Tax. Section 3 and 4 of the CGST Act respectively deal with the class of officers that may be appointed by the Government and/or by the Central Board of Indirect Taxes and Customs. Section 5 of the Central Goods and Services Tax Act empowers the officers of the Central Tax to exercise the powers and discharge the duties conferred on them under the Central Goods and Services Tax Act. In exercise of the power conferred under Sections 3 and 5 of the Central Goods and Services Tax Act, notifications have been issued empowering the Central Tax Authorities with limited territorial jurisdiction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time, shall continue with it and the second proceedings initiated by the other officer shall not be continued until there is logical culmination of the first inquiry initiated. 10. On the working of the Circular, the Division Bench in Indo International Tobacco Ltd. (supra) has so stated, succinctly, in Paragraphs 66 which is extracted herein:- 66. A bare reading of Section 6 of the CGST and the above mentioned Circular, on first blush, supports the interpretation put forth by the Learned Senior Counsel for the petitioners. However, in our opinion, neither Section 6 of the CGST Act nor the Circular dated 5-10-2018 is intended to nor can be given an overarching effect to cover all the situations that may arise in the implementation of the CGST and the SGST Acts. The Circular cannot be extended to cover all and myriad situations that may arise in the administration and the functioning of the GST structure, now being governed by the CGST Act; the SGST Act; the UTGST Act; and the IGST Act. Section 6 of the CGST Act and the above said Circular clearly has a limited application, which is of ensuring that there is no overlapping exercise of jurisdiction by the Central and the State Tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of both the Acts are pari materia which empowers the proper officer under the Act to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry. 17. Thus, Section 6(2)(b) of the C.G.S.T. Act prohibits separate initiation of proceedings on the same subject-matter by the proper officer under the C.G.S.T. Act when proceeding on the same subject-matter by the proper officer under the State Act has been initiated, whereas Section 70 of the U.P.G.S.T./ C.G.S.T. Act merely empowers the proper officer to summon any person in any inquiry. The word proceedings used in Section 6(2)(b) is qualified by the words subject-matter which indicates an adjudication process/proceedings on the same cause of action and for the same dispute which may be proceedings relating to assessment, audit, demands and recovery, and offences and penalties etc. These proceedings are subsequent to inquiry under Section 70 of the Act. The words in any inquiry used in Section 70 of the Act is referable to the provisions of Chapter XIV, i.e. Section 67 (power of inspection, search and seizure), Section 68 (inspection of goods in movement), S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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