No multiple SCN on the same issue by both
SGST and CGST officers

Facts of the case:

  • The petitioner is in receipt of show cause notice from two different government authorities on the similar issue.
  • Aggrieved by the show cause notice by the respondent, the appellant has petitioned before the Hon’ble High Court on the ground that the very same issue is now subject matter of consideration by the Assistant Commissioner, State tax, Bureau of Investigation, South Bengal (HQ), who has issued notice dated 07.11.2022.

Points Considered for Judgment:

  • If the subject issue is similar or if the subject is inter-related, it is better that one authority adjudicate the matter. It is in the interest of not only the assessee but also of the Revenue, if one authority takes the decision and mitigate instances of conflicting decisions.
  • The Bureau of Investigation, South Bengal is a centralized agency and if that agency has already taken up the matter for consideration, it is appropriate that the issues be considered by the same authority.

Order passed by the Hon’ble high court:

The Court directed the respondent to place the entire file pertaining to the show cause notice dated 29th December 2022 to the Special Commissioner, State Tax, Bureau of Investigation, South Bengal. The appellants were directed to submit their reply to the show cause notice within 30 days from the date of receipt of the server copy of the judgment and order.

Our Point of View:

The decision taken by the High Court will be helpful in providing relief to taxpayers in facing multiple authorities for similar issues. The decision will also reduce conflicting decisions taken by different authorities on similar issues.

Samyak Jain, Indirect Tax Associate, SW India