Armour Security (India) Ltd. vs Commissioner, CGST, Delhi East Commissionerate & Anr.
Facts :
The petitioner company received a show cause notice under Section 73 CGST Act from State GST authorities for alleged tax shortfall and excess ITC.
Subsequently, Central GST authorities conducted a search and issued summons under Section 70 requiring production of documents.
The petitioner challenged the summons before Delhi High Court, contending that parallel proceedings on the same subject matter were barred under Section 6(2)(b).
The High Court dismissed the writ petition, holding that summons and investigation are not “proceedings”.
Court Decision:
The Supreme Court upheld the High Court’s view and dismissed the SLP.
It held that issuance of summons under Section 70 is part of inquiry/investigation and cannot be equated with “initiation of proceedings” under Section 6(2)(b).
“Proceedings” under Section 6(2)(b) refer to adjudicatory actions such as assessment, demand, or penalty proceedings under Sections 73 or 74.
Summons is only a step to collect evidence and precedes formal proceedings; hence, no bar on parallel inquiry by another authority.
The Court interpreted Section 6 within the framework of “single interface” and “cross-empowerment”, holding that intelligence-based enforcement actions can be initiated by both Central and State authorities.
Cases Referred:
- G.K. Trading v. Union of India
- Kuppan Gounder P.G. Natarajan v. Directorate General of GST Intelligence
- Anurag Suri v. Director General of GST Intelligence
- Indo International Tobacco Ltd. v. Vivek Prasad
- K.T. Saidalavi v. State Tax Officer
- Rais Khan v. Addl. Commissioner
- M/s R.P. Buildcon Pvt. Ltd. v. Superintendent, CGST
- Tvl. Metal Trade Incorporation v. GST Council Secretariat
- Vivek Narsaria v. State of Jharkhand
- Stalwart Alloys India Pvt. Ltd. v. Union of India
- Kundlas Loh Udyog v. State of H.P.
- Chief Commissioner of CGST v. Safari Retreats Pvt. Ltd.
- K.P. Mohammed Salim v. CIT
Other Case Law
Shrinivasa Realcon (April 2025)
Whether a Development Agreement granting a developer the right to construct a multi-storied complex on the landowner's plot — without any purchase of TDR or FSI from any external person/entity — falls within Entry 5B of the GST Notification dated 28.0
BACKGROUND & FACTSShrinivasa Realcon Pvt. Ltd. (petitioner/developer) entere...
Read MoreM/s Chandan Patra v. Union of India & Ors.
Section 74 order passed ignoring a manually filed and acknowledged reply, and before the date allowed for documents, set aside for violation of natural justice.
BackgroundThe petitioner, a works contractor, did not charge GST for FY 2019-20 ...
Read MoreOm Prakash v. Islam Trading Co.
Whether producing the e-way bill after interception cures the transport of iron scrap without one, and whether intent to evade tax is established for Section 129(3).
BackgroundOn 08.03.2018 a vehicle carrying iron scrap worth Rs. 83,323 under a t...
Read More