Double Taxation Not Permissible: Andhra Pradesh HC Quashes Parallel GST Assessments Against ID Fresh Food [Read Order]

The Directorate General of GST Intelligence (DGGI), Chennai Zonal Unit initiated proceedings against the company ID Fresh Food (India) Private Ltd on alleged misclassification of parottas by the and non-payment of proper tax for the period between July 2017 and December 2021.

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These proceedings resulted in an order-in-original passed by the Commissioner of GST and Central Excise, Chennai South, later upheld by the appellate authority. ID Fresh challenged the decision before the Madras High Court, where the matter is still pending.

Meanwhile, the Assistant Commissioner (ST), Andhra Pradesh, initiated separate assessment proceedings for FY 2019-20 and FY 2020-21, issuing orders dated 27.08.2024 and 25.02.2025. The company challenged these actions before the Andhra Pradesh High Court, arguing that they amounted to parallel assessments for the same taxable period, already under adjudication by central authorities.

The bench of Justice R. Raghunandan Rao and Justice Challa Gunaranjan agreed with the petitioner’s contention.

The Court observed that since the central authorities had already completed assessments for the same period and the matter was sub judice before the Madras High Court, fresh state-level assessments would effectively lead to double taxation, which is not legally sustainable.

Accordingly, the Court set aside both assessment orders issued by the state tax authority but left it open for the respondents to pursue their claims before the Madras High Court, which is already seized of the matter.

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