Venkateshwara Dairy Products Vs Assistant Commissioner (ST) (Telangana High Court)
Conclusion: Since issuance of multiple show cause notices and orders for the same tax period under the TGST/CGST Acts was contrary to law and administrative propriety. therefore, in light of the State’s assurance and Circular No. LIV(2)/33/2025 dated 14.10.2025 introducing a Standard Operating Procedure (SOP) for rectification under Section 161 of the TGST Act, the Court directed proper officers to rectify such errors within a reasonable time, after due intimation to assessees.
Held: In the instant case, numerous taxpayers were subjected to a barrage of procedural anomalies by the GST department. These anomalies included: an SCN being issued to one entity but the final order being passed against assessee; multiple Orders-in-Original (OIOs) being issued for the same tax period; a final order being passed on a first SCN, even after a second, related SCN had been dropped (and vice-versa). These conflicting orders led to unjust coercive recoveries and attachment of assets, even in cases where Input Tax Credit (ITC) adjustments were available. The taxpayers filed multiple writ petitions challenging the validity of these duplicative and contradictory proceedings. It was held that a Standard Operating Procedure (SOP), issued via a circular dated October 14, 2025, which invoked the department’s power of rectification under Section 161 of the CGST Act to resolve such anomalies. The SOP allowed officers to rectify these errors, such as deleting duplicated tax demands, within six months, as these were considered “errors apparent on the record.” High Court disposed of the writ petitions by directing the proper officers to apply this SOP and rectify the impugned notices and orders in accordance with the law, within a reasonable time, and with due intimation to the taxpayers. Any issues that were not amenable to rectification under this SOP could be pursued by the taxpayers before the appropriate legal forum. Writ petitions were disposed of with liberty to seek further remedy if grievances persist post-rectification.
