Orders to Be Set Aside as Two Identical Orders Were Passed for Same Period by Central and State Authorities: HC

Case Details: Shiva Enterprises vs. State of Karnataka - [2025] 173 taxmann.com 484 (Karnataka)

Judiciary and Counsel Details

• S.R. Krishna Kumar, J.
• Raju H.Y., Adv. for the Petitioner.
• Smt. Jyothi M Maradi, HCGP for the Respondent.

Facts of the Case

The petitioner, in this case, challenged two identical orders passed by two different authorities under Section 73(9) of the Karnataka GST Act, for the same tax period and subject matter. Both orders, issued for the same assessee, led to demands related to tax or input tax credit (ITC) without any allegations of fraud. The petitioner contended that the issuance of identical orders by two separate authorities for the same period was legally impermissible and requested that both orders be set aside. Furthermore, the petitioner sought that the matter be remitted to one authority for fresh consideration, enabling them to avail the benefits of the Amnesty Scheme under Section 128A of the KGST Act, as per the legal provisions.

High Court Held

The Hon’ble High Court held that the passing of two identical orders by different authorities for the same tax period and subject matter was not permissible under the law. The Court emphasized that such dual orders were legally invalid and, therefore, both impugned orders were set aside. The matter was remitted back to one authority for reconsideration afresh, in accordance with the law. Additionally, the petitioner was granted the opportunity to avail the benefits of the Amnesty Scheme under Section 128A of the KGST Act, ensuring procedural fairness and compliance with statutory guidelines.