Sri Velavan Fireworks Vs Commercial Tax Officer (Madras High Court)
The writ petition challenged an order dated 22.03.2024 passed by the Commercial Tax authorities. By consent of both parties, the Madras High Court took up the matter for disposal at the admission stage. The petitioner submitted that proceedings had earlier been initiated for delay in filing GSTR-3B returns for the period from April 2020 to March 2021, and an order dated 26.08.2022 had imposed interest and penalty. The interest for this delay was quantified at ₹71,963, which the petitioner had already paid.
Subsequently, the respondent passed another order dated 06.01.2023 for the very same issue and the same period, again quantifying interest at ₹68,025. The petitioner contended that this resulted in duplication of proceedings and amounted to double taxation, rendering the second demand unsustainable in law.
The Additional Government Pleader confirmed the petitioner’s submissions and fairly requested that the impugned order be quashed. After examining the records, the Court found that two different authorities had passed orders for the same delay period, leading to duplication and double taxation. Holding the impugned order dated 06.01.2023 to be unsustainable, the Court quashed it and allowed the writ petition, with no order as to costs.
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