GST Officer cannot Re-levy Demand Already Covered: Orissa HC says this Amounts to Double Taxation, sets aside Order [Read Order]
While quashing the order, the court directed the GST officer to issue a fresh intimation confined to the period October 2021 to March 2022.
![GST Officer cannot Re-levy Demand Already Covered: Orissa HC says this Amounts to Double Taxation, sets aside Order [Read Order]](https://images.taxscan.in/h-upload/2025/08/13/2076289-doubl-e-taxation-taxscan.webp "GST Officer cannot Re-levy Demand Already Covered: Orissa HC says this Amounts to Double Taxation, sets aside Order [Read Order]")
The Orissa High Court has set aside a GST ( Goods and Services Tax ) demand order issued by the Additional State Tax Officer, holding that it amounted to double taxation. The petitioner, Sai Sitaram Construction, a registered dealer, challenged the order passed under Section 73 of the Central and Odisha GST Acts for the financial year 2021-22. Earlier, for the period April...
The Orissa High Court has set aside a GST ( Goods and Services Tax ) demand order issued by the Additional State Tax Officer, holding that it amounted to double taxation.
The petitioner, Sai Sitaram Construction, a registered dealer, challenged the order passed under Section 73 of the Central and Odisha GST Acts for the financial year 2021-22.
Earlier, for the period April to September 2021, the Joint Commissioner of State Tax had already raised a demand of ₹21,38,338/- on account of alleged mismatch in Input Tax Credit (ITC) claims vis-à-vis GSTR-2B, vide order dated 1st December 2022. That demand had been recovered from the petitioner’s cash ledger during the pendency of appeal.
However, in the subsequent order dated 11th April 2025, covering April 2021 to March 2022, the same amount relating to April - September 2021 was again included, resulting in duplication of the earlier demand.
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The counsel for the petitioner, Adv. Kajal Sahoo argued that such inclusion was without jurisdiction and in violation of the GST Act.
When the matter was heard, the Standing Counsel for the GST Department conceded that the demand for April- September 2021 had indeed been included again in the April 2021 - March 2022 order.
The bench of Chief Justice Harish Tandon and Justice M.S. Raman, noting this positing, held that the second demand was untenable in law as it led to double taxation. It said that “On the conceded position as aforesaid, this Court cannot, therefore, sustain the order dated 11th April, 2025 as tenable in the eye of law as such a recourse would tantamount to double taxation. Hence, said order is, hereby, set aside.”
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While quashing the order, the court directed the GST officer to issue a fresh intimation confined to the period October 2021 to March 2022.
The petitioner was instructed to produce books of accounts, tax invoices, and other relevant documents, after which the authority shall pass a fresh order under Section 73 within six weeks, following due opportunity of hearing.
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