Rajasthan High Court Stays Parallel GST Recovery Proceedings [Read Order]

The Rajasthan High Court has stayed parallel GST recovery proceedings initiated against M/s Balaji Exports for the same tax period, observing that Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 permits initiation of proceedings by only one proper officer. A Division Bench comprising Acting Chief Justice Sanjeev Prakash Sharma and Justice Bipin Gupta passed the interim order while hearing a writ petition challenging multiple proceedings for FY 2018-19. The court pointed out that

“Considering the provisions of Section 6(2)(b) of the Central Goods and Services Tax Act, only one proper officer can initiate proceedings.”

The petitioner contended that the Joint Commissioner, Business Audit Wing-IV, Rajasthan had already passed an order under Section 73 of the CGST Act for recovery of GST dues relating to the period April 2018 to March 2019. Despite this, another DRC-01 notice was issued by the Assessing Officer for the very same tax period.

It was further submitted that on 29.01.2024, the Joint Commissioner, Circle-C, Jaipur-IV passed a separate order under Section 73 imposing additional tax, interest and penalty liabilities for the same assessment period. The petitioner argued that parallel adjudication proceedings by different officers for the same subject matter were impermissible under the CGST framework.

“The proceedings, therefore, initiated by DRC-01 dated 29.01.2024 and further orders passed prima facie stand vitiated in law…”

The Division Bench noted that the earlier order dated 27.03.2024 passed by the Audit Wing was already under challenge in appellate proceedings and the petitioner had also made the requisite pre-deposit. Prima facie accepting the petitioner’s contention regarding duplication of proceedings, the Court observed that the subsequent proceedings initiated through DRC-01 dated 29.01.2024 appeared legally unsustainable.

Therefore, the High Court stayed the proceedings arising out of the DRC-01 notice dated 29.01.2024 as well as the consequential recovery order dated 27.04.2024. The matter has been listed for further hearing on 22.07.2026.

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