Issuance of Two Orders u/s 73 for Same Tax Period Prima Facie Unsustainable: Delhi HC [Read Order]

In a recent ruling, the Delhi High Court held that issuing two separate orders under Section 73 of the Central Goods and Services Tax ( CGST ) Act, 2017, for the same tax period appears prima facie unsustainable.

Nitender Thakur, the petitioner, filed a writ petition challenging two show cause notices ( SCNs ) issued by the respondents for the tax period April 2018 to March 2019, dated 4th December and 9th December 2023.

These SCNs reached final orders under Section 73 of the CGST Act on 19th April and 26th April 2024, respectively. The petitioner had filed a statutory appeal against the order dated 19th April 2024, which was still pending, leaving the court to examine the challenge against the 26th April 2024 order.

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The petitioner argued that the respondents issued two separate orders for the same tax period which led to duplication in claims and demands. Despite filing a rectification application to address this duplication, the respondents rejected the application in an order dated 29th July 2024. The respondents’ counsel opposed the petition.

The bench comprising Justice Yashwant Varma and Justice Harish Vaidyanathan Shankar observed prima facie that issuing two separate orders for the same tax period was unsustainable and required further consideration.

The court noted that the matter required further examination. So, the court stayed the operation and effect of an order dated 26th April 2024, issued by the Assistant Sales Tax Officer, Delhi, under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017.

The court directed that the operation and effect of the order dated 26th April 2024 be stayed until the next hearing. The case was scheduled for further proceedings on 4th March 2025.

To Read the full text of the Order CLICK HERE

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