Order Date – 30 January 2023

Parties: M/s.VGN Projects Estates Private Limited Vs Assistant Commissioner (State Taxes) and Joint Director, Directorate General of GST Intelligence

Facts –

• The Petitioner, M/s.VGN Projects Estates Private Limited, was issued with a show cause notice dated 21.10.2022. 
• A similar show cause notice was issued by the Central Authority under CGST Act, 2017 on 29.07.2022 against the petitioner, involving the very same defects and the proper officer under the CGST Act has already initiated any proceedings against the petitioner on the very same subject matter

Issue –

• Whether show cause notice dated 21.10.2022 has been issued in violation of Section 6(2)(b) of the TNGST Act, 2017?

Order –

• The single bench of Hon’ble High Court held that the petitioner will have to submit a detailed reply to the impugned show cause notice to the respondents to enable the respondents to consider the petitioner's grievance that no fresh proceedings can be initiated against them under the TNGST Act, 2017 as the Central Authority has already initiated action against the petitioner for the very same subject matter.
• The only limited relief that can be granted to the petitioner is to permit them to file a detailed reply to the impugned show cause notice, stating all their objections that have been raised in this Writ Petition including the objection with regard to Section 6(2)(b) of the TNGST Act, 2017.
• Writ Petition is disposed of by directing the petitioner to submit a reply to the impugned show cause notice and on receipt of the said reply, the first respondent shall pass final orders on merits and in accordance with law.