GST Department Cannot Issue Multiple Notices for Same Financial Year: Allahabad HC

GST Department Cannot Issue Multiple Notices for Same Financial Year: Allahabad HC

The petitioner company had received a show cause notice and later a GST order. These proceedings were still pending, and the department still issued another show cause notice for the same financial years. While the proceedings for the second show cause notice were still pending, the GST department issued another order and also started recovery proceedings against the petitioner.

The petitioner approached the Allahabad High Court, arguing that the GST authorities cannot issue several show cause notices on the same grounds and for the same financial year. The petitioner argued that there was a difference in the tax amounts mentioned in the notice and in the final orders. One of the key arguments was also that the petitioner company was not given a date for a personal hearing in the DRC.

The Court said that tax authorities cannot issue multiple show cause notices for the same financial year. It was observed that the petitioner was not given the opportunity of a personal hearing, and the amount mentioned in the notice was different from the amount mentioned in the order.

Therefore, the court held that the GST orders were without jurisdiction and were passed without the application of mind. Therefore, the court quashed all the GST orders and directed the authority to pass a new show cause notice.