Badarla Platinum Enterprises LLP Vs Assistant Commissioner of State Tax (Telangana High Court)
Telangana High Court Sets Aside GST Assessment Due to Multiple Show Cause Notices for Same Tax Period
The Telangana High Court held that where multiple show cause notices are issued for the same tax period without adjudicating the earlier notice, the assessing authority must first rectify the procedural irregularity under Section 161 of the GST Act. The Court set aside the ex parte assessment order and remanded the matter for fresh adjudication after granting the taxpayer an opportunity to file a reply and be heard.
Introduction
In Badarla Platinum Enterprises LLP vs Assistant Commissioner of State Tax & Others, the Telangana High Court examined the legality of GST proceedings where the State Tax Department issued two separate show cause notices for the same tax period (FY 2019-20).
The Court found that the first notice had never been adjudicated despite the taxpayer filing a reply, while the second notice culminated in an ex parte assessment order under Section 73 of the GST Act. Considering this procedural irregularity, the Court intervened and directed the department to rectify the earlier proceedings and conduct a fresh assessment.
Background of the Case
