Dual GST Orders for Same Period on Different Grounds: Gujarat High Court Stays Recovery [Read Order]

In a recent order, the Gujarat High Court stayed coercive recovery proceedings due to two separate assessment orders passed for the same tax period on different grounds.

D M Jewellers filed a writ petition before the High Court challenging two Orders-in-Original passed by the GST authorities for the tax periods of February and March 2020. According to the petitioner, the first order disallowed the entire Input Tax Credit (ITC) on the ground of non-filing of returns, and the second order raised a demand based on a mismatch between the GSTR-3B and GSTR-2A filings. Both orders related to the same period but were based on separate grounds, effectively creating duplicate tax liabilities.

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The petitioner’s counsel argued that the GST department had violated principles of natural justice. A show cause notice (SCN) was issued with a scheduled hearing date of 8 August 2024, but the notice was received by the petitioner only on 14 August 2024, after the hearing date had already passed. Despite this, the department proceeded to finalize the orders. The petitioner had filed a reply to the SCN on 22 August 2024, but this was not considered before passing the impugned orders.

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The petitioner’s counsel further argued that the issuance of two distinct orders for the same tax period and the denial of an opportunity to be heard constituted a serious procedural lapse. The petitioner sought relief from the High Court, requesting that the orders be quashed and no coercive steps be taken in the interim.

The GST department’s counsel, Mr. Ankit Shah, appeared on advance notice but no detailed response was recorded at this stage of the proceedings.

The bench comprising Justice Bhargav D. Karia and Justice D.N. Ray observed the petitioner’s argument that the show cause notice was received only after the scheduled date of personal hearing. The court found merit in the submission that the petitioner was effectively denied a chance to present its case.

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The court also observed the overlapping nature of the two orders for the same period. The court issued notice to the respondents, returnable on 1 May 2025, and granted ad-interim relief in the form of a stay on coercive action against the petitioner.

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The court directed that no recovery or enforcement proceedings be taken during the pendency of the writ petition. Direct service through email was permitted to expedite communication.

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