Background of the Case

In the present case, the petitioner, Ramada Engineering Industry, challenged proceedings initiated by the Central GST authorities under Section 74 of the CGST Act on the ground that earlier proceedings had already been undertaken by the State GST authorities. The dispute centered around the interpretation of Section 6(2)(b) of the CGST Act, which seeks to prevent duplication of proceedings by different GST authorities in respect of the same matter.

The petitioner was initially subjected to proceedings by the State GST authorities under Section 73 of the relevant State GST Act for the Financial Year (FY) 2019–2020. During those proceedings, the State authorities alleged that the petitioner had incorrectly declared its tax liability and had availed excess Input Tax Credit (ITC). After considering the matter, the State authorities passed an adjudication order confirming the demand against the petitioner.