Dott Services Limited Vs State of Telengana (Telangana High Court)
Telangana High Court recently ruled on a contentious issue involving Dott Services Limited and the State of Telangana’s Goods and Services Tax Department. This case highlights the complexities arising from parallel proceedings under state and central GST laws.
The crux of the matter revolved around a Demand Order issued by the State GST Department against Dott Services Limited for the tax period July 2017 to March 2018. However, the petitioner challenged this order primarily on the grounds of duplicity of action. They argued that the Central GST Authority had already initiated proceedings and passed an Order-in-Original on the same matter.
During the proceedings, the petitioner contended that the state authorities were duly informed about the actions of the Central Authority. Furthermore, they emphasized the lack of necessity for subsequent proceedings when the matter had already been concluded at the central level.
The State Government, in its defense, cited procedural irregularities and lack of timely information from the petitioner’s side. However, the Court observed that such arguments were untenable given the circumstances of the case.
In its judgment, the Telangana High Court relied on Section 6 of the CGST Act, which prohibits subsequent proceedings on the same set of facts and issues once finalized by the Central Authority. The Court found merit in the petitioner’s argument and consequently set aside the Demand Order dated December 30, 2023.
