The Delhi High Court directed to re- adjudicate after clubbing two show cause notice ( SCN ) demanding GST on the Same Tax Period. It was held that after clubbing SCN, it shall be re-adjudicated by one proper officer under the law.
Dinesh Kumar Varma, the Petitioner challenged the order passed under Section 73 of the Central Goods and Services Tax Act, 2017 [“the Act”], whereby a show cause notice dated 21.09.2023 issued by the Sales Tax Officer, Class-II has been adjudicated and a demand of Rs. 15,53,240/- created against the petitioner.
Counsel for petitioner submitted that petitioner was unaware of the said show cause notice and could not file response thereto. He further submitted that petitioner has become aware of another order, whereby another show cause notice for the same tax period i.e. July 2017 to March 2018 has been adjudicated and a demand of the exact same amount created against the petitioner.
Perusal of the order dated 25.12.2023 passed on show cause notice dated 21.09.2023 and order dated 17.12.2023 passed on show cause notice dated 24.09.2023 show that both the show cause notices and orders pertaining to the same tax period i.e. July, 2017 to March, 2018 and both orders have been passed by two different officers but of the same jurisdictional office i.e. AVATO, Ward-93, Zone-B, Delhi. Both the show cause notices create nearly identical demand.
A division bench of Justice Sanjeev Sachdeva and Justice Purushaindra Kumar Kaurav found that both the show cause notices and orders pertain to the same tax period i.e. July 2017 to March 2018 and raised identical demand by two different officers of the same jurisdiction.
While allowing the petition, the court held that the proceedings on the Show Cause Notices dated 21.09.2023 and 24.09.2023 are clubbed and shall be re-adjudicated by one proper officer under law.
Further held that Petitioner shall file a reply to both the show cause notices within a period of 30 days from today. Thereafter, the proper officer shall adjudicate the notices within the period prescribed by Section 75(3) of theGST Act.
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