Cross-Empowerment
2 articles
Same Assessee, Same Period, Different Subject Matter: Delhi High Court Applies Armour Security's Two-Fold Test to Uphold Parallel DGGI Proceedings Over State ITC Action
An exporter facing a combined demand of over seven crore rupees from the Directorate General of GST Intelligence argued that the State GST department's earlier, separate proceedings on the same input tax credit and period barred the DGGI's case under Section 6(2)(b) of the CGST Act. The Delhi High Court disagreed, applying the Supreme Court's Armour Security two-fold test to hold that a general ineligible-ITC assessment and a fraud investigation into fictitious suppliers are not the 'same subject matter' merely because both concern ITC claimed in overlapping years, and relegated the challenge, along with an objection to a multi-year consolidated notice, to the statutory appeal.
13 min readState Registration Is No Shield: Delhi High Court Applies Armour Security to Uphold DGGI's Cross-Empowerment in a Multi-State Works-Contract ITC Chain
A works-contract subcontractor holding three separate GST registrations faced a combined demand of over five and a half crore rupees across three states, arising from an alleged fake-invoicing chain traced through its sub-subcontractor. The Delhi High Court rejected its challenge to DGGI's jurisdiction over State-registered taxpayers and to the Delhi North Commissionerate's authority to adjudicate, relegating the reasons-adequacy and Circular 171 defences to the Section 107 appeal, while extending interim protection to file it.
13 min read