Supreme Court to Decide: Can GST Circulars Override Statutory Ban on Parallel Proceedings?

Supreme Court to Decide: Can GST Circulars Override Statutory Ban on Parallel Proceedings?

• Supreme Court Stays High Court Order

  The Supreme Court has stayed the operation of the Bombay High Court’s judgment in the case of Sree UGCL Projects Ltd. v. Additional Director (DG GST Intelligence). The Court issued a notice to the Revenue Department to examine a critical legal question regarding the validity of parallel proceedings initiated by different GST authorities.

• The Core Legal Dispute

  The central issue before the Apex Court is whether Section 6(2)(b) of the CGST Act, which explicitly prohibits multiple authorities from initiating proceedings on the same subject matter, can be overridden or diluted by administrative circulars or executive instructions that permit such dual actions.

• Petitioner’s Argument on Statutory Supremacy

  The Petitioner, Sree UGCL Projects Ltd., contended that the Central GST Authorities initiated proceedings for the same period (AY 2017-18 and 2018-19) for which State GST Authorities had already begun action. They argued that relying on CBIC circulars to justify this duplication is legally unsustainable as circulars cannot override a clear statutory bar.

• Defense Claims Broader Scope

  The Respondent authorities argued that the bar under Section 6(2)(b) did not apply because the Central proceedings covered a broader timeframe or different issues than those examined by the State authorities. The Bombay High Court had previously dismissed the Petitioner’s writ petition, directing them to approach the Appellate Authority instead.