GST GSTR-3B duplication of proceedings and double taxation leads to quashing of one penalty order for same period

Duplication of proceedings arose where two separate authorities imposed penalties and interest for delayed GSTR-3B filings for the same period; the HC concluded that such duplication results in double taxation and renders the later impugned action unsustainable in law, leading to quashing of the impugned order dated 06.01.2023 and relief to the petitioner.

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Issues: Whether the impugned order dated 06.01.2023 imposing interest and penalty for delay in filing GSTR-3B returns for the period April-2020 to March-2021, which duplicates an earlier order for the same period, results in double taxation and is liable to be quashed.

Analysis: Two distinct orders were shown to have been passed by different authorities in respect of delay in filing GSTR-3B for the same period, resulting in overlapping demands for interest and penalty. The duplicate proceedings produce double taxation for the same delay period. The respondent accepted the factual position. In these circumstances, the later order is unsustainable as it duplicates an earlier demand and subjects the same taxable event to repeated recovery.

Conclusion: The impugned order dated 06.01.2023 is quashed and the writ petition is allowed.

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