Parallel Proceedings By State And Central Authorities When Permissible/not Permissible

The Supreme Court has in its Judgement dated 14 August 2025 upheld the Delhi High Court decision which had declined to interdict the summons issued by the Central GST authorities pursuant to a search, in a case where the assessee had relied upon Section 6(2)(b) of the CGST Act, 2017 to submit that since the State GST authorities were in seisin of the proceedings, it would be impermissible for the Central authorities to commence any proceedings. While holding so, the Apex Court observed that,

• All actions initiated for inquiry/gathering of evidence or information do not constitute 'proceedings' within the meaning of Section 6(2)(b) of the CGST Act.
• Expression 'initiation of any proceedings' occurring in Section 6(2)(b) refers to the formal issuance of SCN, and does not cover issuance of summons, or the conduct of any search, or seizure etc.