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Kochhar & Co. has secured significant interim relief in a case involving overlapping jurisdiction between Central and State GST Authorities. The Uttarakhand High Court has granted a stay on further proceedings regarding show cause notices issued to a Uttarakhand-based manufacturer by both Central and State GST Authorities. These notices involved the re-classification of PP Bags and the denial of refunds due to an inverted duty structure.

The High Court, by an order dated July 9, 2024, has further extended this interim stay until the next date of hearing.

This case highlights the challenges taxpayers face due to the concurrent jurisdiction of Central and State GST Departments. Ideally, the exercise of jurisdiction by one authority should preclude the other from intervening on the same issue. However, despite this legal principle, taxpayers continue to receive overlapping notices from both authorities.

This matter was represented by our Senior Partner & Head of Indirect Tax Practice Ms. Reena Asthana Khair and Principal Associate Ms. Vrinda Bagaria.