GST demand quashed where prima facie evidence showed tax may already have been paid on the same transaction

A GST demand confirmation was set aside where the record prima facie showed that tax may already have been discharged on the same taxable transaction under the IGST regime. The Court found that, given the invoice, credit note and the reported supply through another unit, the adjudicating authority could not sustain the order without a fresh factual examination of the petitioner's reply. The matter was remitted for reconsideration on merits, leaving the substantive issues open.

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Issues: Whether the demand order confirming the GST proposal was liable to be quashed and the matter remitted for fresh consideration on the basis that tax appeared to have been discharged on the same transaction.

Analysis: The writ petition challenged the order confirming the proposal in the show cause notice. The petitioner asserted that an invoice originally raised from the Tamil Nadu registered premises was followed by a credit note, while the corresponding supply was reflected through the Bangalore unit and IGST was paid on the same taxable turnover. On the material placed before the Court, it was prima facie apparent that tax liability may already have been discharged under the IGST regime on the same transaction. In that situation, the impugned order could not be sustained without a fresh examination of the facts and the petitioner's reply.

Conclusion: The demand order was quashed and the matter was remitted to the respondent for a fresh order on merits after receipt of the petitioner's reply.

Final Conclusion: The dispute was restored to the adjudicating authority for reconsideration, with all substantive issues left open.

Ratio Decidendi: Where the record prima facie indicates that tax may have been paid on the same transaction, a demand confirmation order can be set aside and the matter remitted for fresh adjudication on merits after affording an opportunity to reply.

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