Procter and Gamble Home Products Private Limited Vs Union of India (Telangana High Court)
Telangana High Court, in Procter and Gamble Home Products Pvt. Ltd. Vs. Union of India, set aside a GST order issued under Section 73 of the CGST Act, 2017. The petitioner challenged the order dated 31.08.2024, arguing that the Proper Officer in Telangana failed to determine the tax independently and instead relied on an ongoing case in Maharashtra. The petitioner contended that each state’s GST authority is an independent adjudicating body, and the Telangana officer had a statutory duty under Section 73(9) to assess tax liability without waiting for the outcome of proceedings in another state. The order confirmed a demand of ₹35.31 crore based on potential communication from Maharashtra, which the petitioner claimed was legally unsound.
The court observed that the procedure followed was inconsistent with the CGST Act and that tax determination must be done by the Proper Officer within the state, without external dependencies. The Special Government Pleader for State Tax acknowledged the procedural irregularity and agreed that the matter should be reconsidered. Consequently, the High Court quashed the order and remanded the case for fresh adjudication. The ruling underscores the requirement for independent tax determination by state GST authorities and ensures adherence to statutory procedures under the GST framework.
