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TMI Blog2024 (10) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... mplates a complete bar / embargo on the State GST Authorities to initiate proceedings in a situation where the Central GST Authorities had already initiated proceedings as against the petitioner in respect of the same subject matter. The impugned Show Cause Notices at Annexures A, Al and A2 are clearly illegal, arbitrary and without jurisdiction or authority of law and contrary to the aforesaid statutory provisions and the same deserve to be quashed. The challenge to the impugned Show Cause Notice at Annexure-B can be disposed of by directing the petitioner to submit a suitable reply together with the relevant documents and by directing the concerned respondent Nos.1, 3 and 4, Central GST Authorities to consider the same and proceed further in accordance with law bearing in mind the observations made (Section 13(3)(C) of the CGST Act, 2017, Section 128A of the CGST Act, 2017, Circular No. 211/5/24- GST dated 26.06.2024 etc.). The impugned Show Cause Notices at Annexures A, A1 and A2 dated 05.08.2023, 05.08.2023 and 06.10.2023, respectively, are hereby quashed - The petition is allowed in part. - THE HON'BLE MR JUSTICE S. R. KRISHNA KUMAR FOR THE PETITIONER : SRI. RAVI RAGHAVA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent Nos.2, 5, 6 and 7 are the State GST Authorities under the Karnataka Goods and Services Act, 2017 (KGST Act). The petitioner seeks quashing of the impugned Show Cause Notice at Annexure B dated 27.09.2023 issued by Central GST Authorities as well as the impugned Show Cause Notices at Annexures A and Al both dated 05.08.2023 and also the impugned Show Cause Notice at Annexure A2 dated 06.10.2023, all having been issued by the State GST authorities and for other reliefs. 3. The respondents have filed their statement of objections and have contested the petition. 4. Heard learned counsels for the parties and perused the material on record. 5. In addition to reiterating the various contentions urged in this petition and referring to the material on record, the learned counsel for the petitioner invited my attention to the impugned Show Cause Notices dated 05.08.2023 at Annexures A and Al and impugned Show Cause Notice dated 06.10.2023 at Annexure - A2 issued by the State GST Authorities in order to point out that prior to issuance of the said Show Cause Notices, the Central GST Authorities had already initiated proceedings in relation to the very same subject matter by issui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned, the Central GST Authorities had already initiated proceedings as against the petitioner and consequently, in the light of Section 6(2)(b) of the KGST Act, 2017 which contemplates a complete bar / embargo on the State GST Authorities to initiate proceedings in a situation where the Central GST Authorities had already initiated proceedings as against the petitioner in respect of the same subject matter. I am of the considered view that the impugned Show Cause Notices at Annexures A, Al and A2 are clearly illegal, arbitrary and without jurisdiction or authority of law and contrary to the aforesaid statutory provisions and the same deserve to be quashed. 10. Insofar as challenge to the impugned Show Cause Notice at Annexure - B dated 27.09.2023 issued by the respondent Nos.1, 3 and 4, Central - GST Authorities is concerned, the decision of this court in the case of M/s. Bosch Ltd. V. State of Karnataka Ors., supra, read with the Circular No 211/5/24-GST dated 26.06.2024 is squarely applicable. As can be seen from Paragraph Nos.2.5, 2.6 2.7 of Circular, the petitioner would be entitled to avail ITC and cannot be deprived of the same or fastened with liability to pay intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the recipient under section 31(3)(f) of CGST Act, subject to payment of tax on the said supply by the recipient and fulfilment of other conditions and restrictions of section 16 and 17 of CGST Act. In case, the recipient issues the invoice after the time of supply of the said supply and pays tax accordingly, he will be required to pay interest on such delayed payment of tax. Further, in cases of such delayed issuance of invoice by the recipient, he may also be liable to penal action under the provisions of Section 122 of CGST Act. 6. As can be seen from paragraph Nos.2.5, 2.6 and 2.7, the petitioner would be entitled to availment of ITC and cannot be deprived of the same or fastened with liability to pay interest on account of his claim having been filed belatedly as can be seen from the circular. The aforesaid circular completely supports the claim of the petitioner especially in the light of the judgment of the Apex Court in the K.P.VARGHESE Vs. INCOME TAX OFFICE, ERNAKULAM, AIR 1981 SC 1922 to the effect that a CBIC circular is binding upon the respondents. However, since the said circular was issued during the pendency of the present petition and the respondents did not ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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