Duplicate GST Orders for the Same Period are Invalid; HC Remands for Fresh Hearing.

Duplicate GST Orders for the Same Period are Invalid; HC Remands for Fresh Hearing.

Issue

Whether the issuance of two separate Show Cause Notices (SCNs) and two corresponding assessment orders for the identical tax period and on the identical subject matter is a valid legal proceeding, or if it constitutes a procedural duplication that violates the principles of natural justice.

Facts

• The GST department issued two separate Show Cause Notices (SCNs) to the petitioner, Poorvi Cards.
• Both SCNs were for the same tax period (July 2017–March 2018) and were based on identical grounds.
• This duplication resulted in two separate assessment orders being passed, each raising the exact same GST demand against the assessee.
• The assessee contended that this procedural duplication was illegal and a violation of the principles of natural justice, especially as they were not given an effective opportunity to file a reply or have a personal hearing.
• The assessee filed a writ petition to quash the duplicate orders.

Decision

• The Delhi High Court set aside (quashed) both impugned assessment orders.
• It held that the issuance of multiple SCNs and duplicate orders for a single tax period on the same grounds is a clear procedural lapse and a violation of fair legal process.
• The matter was remanded back to the Adjudicating Authority to conduct a single, fresh adjudication.
• The authority was directed to provide the assessee with a due opportunity to be heard before passing the new, consolidated order.
• The court refrained from examining the merits of the tax demand, leaving all legal and factual contentions open for the assessee to raise in the fresh proceeding.

Key Takeaways

• No Double Jeopardy in Tax: The department cannot subject a taxpayer to multiple, parallel proceedings for the same tax period and the same alleged offense. This is a fundamental violation of fair procedure.
• Consolidated Proceeding is Mandatory: The law requires a single, consolidated proceeding for a single cause of action. The issuance of duplicate orders is an error that renders them invalid.
• Procedural Fairness is Key: The chaotic and duplicative nature of the proceedings, combined with a lack of a proper hearing, was a clear breach of the principles of natural justice.
• Remedy is a Fresh Start: The correct legal remedy for such a procedural “mess” is to quash all the invalid orders and remand the case for a single, clean, and fair adjudication from the SCN stage.