State Authorities Couldn’t Initiate Fresh Proceedings if Central Authority Had Already Passed an Order on Same Issue

Case Details: Dott Services Ltd. v. State of Telangana - [2024] 161 taxmann.com 654 (TELANGANA)

Judiciary and Counsel Details

• • P. Sam Koshy & N. Tukaramji, JJ.
  • Kailash Nath P.S.S. Ld. Counsel for the petitioner .
  • Swaroop Oorilla, Ld. Special Govt Pleader for the Respondent.

Facts of the Case

The petitioner was aggrieved by the demand order issued by the GST department and it filed writ petition by contending that the impugned action was bad since for the same cause of action, the Central Authority had already initiated action and passed the order-in-original. It was also submitted that the order passed by the Central Authority was already under challenge before the High Court, and an interim order was granted by the High Court.

High Court Held

The Honorable High Court noted that the Central Authority had already initiated proceedings and had concluded the same by passing the order-in-original. Moreover, the petitioner had also intimated the State agencies about the proceedings drawn by the Central Authority.

The Court further noted that as per Section 6 of CGST Act, 2017, once proceedings have already been drawn and finalized on the same set of facts and issue, there cannot be subsequent proceedings again drawn. Therefore, the Court held that the impugned demand order was liable to be quashed.