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Tax Authorities Barred from Duplicate Demand Order Under TGST and CGST, Invalidating Subsequent Proceedings for July 2017-March 2018 The HC examined a tax dispute involving a Demand Order under TGST and CGST Acts. The court found the order issued by State authorities unlawful, as ...
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Tax Authorities Barred from Duplicate Demand Order Under TGST and CGST, Invalidating Subsequent Proceedings for July 2017-March 2018
The HC examined a tax dispute involving a Demand Order under TGST and CGST Acts. The court found the order issued by State authorities unlawful, as Central authorities had already passed an Order-in-Original for the same cause of action. The HC quashed the impugned Demand Order dated 30.12.2023, ruling subsequent proceedings invalid for the tax period July 2017 to March 2018.
Issues involved: The challenge to Demand Order u/s TGST Act and CGST Act for the tax period July, 2017 to March, 2018.
Issue 1: Challenge to Demand Order under TGST Act and CGST Act - The petitioner contested the Demand Order DRC-07, dated 30.12.2023, under the TGST Act and CGST Act. - The petitioner argued that the action was invalid as the Central Authority had already taken action and passed an Order-in-Original on 31.10.2023 for the same cause of action. - The petitioner claimed that the Demand Order issued by respondent No. 2 was unlawful u/s Section 6 of CGST Act due to the prior actions of respondent No. 4. - The State counsel was directed to clarify the maintainability of subsequent proceedings by State Authorities. - The State counsel highlighted the lack of information provided by the petitioner regarding the Order-in-Original passed by respondent No. 4, leading to the issuance of the impugned order. - Reference was made to Circular No. 4 of 2023, mandating electronic uploading of original orders for legal enforceability, which had not been done in this case. - It was emphasized that once proceedings have been concluded on the same facts and issue, subsequent proceedings cannot be initiated, as was the case with respondent No. 4's actions. - The Court found that the grounds raised by State Authorities were unsustainable, as the lack of uploading the order by Central Authorities did not empower State agencies to initiate new proceedings already handled by the Central Authority. - The Court also noted that the petitioner had provided timely intimation to the authorities, and the Order-in-Original passed by respondent No. 4 had been endorsed to State agencies, indicating their awareness of the proceedings. - Consequently, the Court set aside/quashed the impugned Demand Order dated 30.12.2023, ruling it to be unsustainable for the tax period July, 2017 to March, 2018.
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