Sri Sai Krishna Enterprises Vs Superintendent of Central Tax (Telangana High Court)
In a practical ruling, the Telangana High Court addressed a common GST issue—tax demand raised despite prior payment. Such cases usually arise due to return mismatches or lack of proper verification by authorities. The Court stepped in to ensure that taxpayers are not subjected to double taxation, while also directing them to follow proper procedural remedies.
Case Background
The petitioner, M/s. Sri Sai Krishna Enterprises, challenged recovery proceedings initiated by the department.
- SCN dated: 25.09.2023
- Order-in-Original dated: 26.12.2023
- Recovery Notice (DRC-13): 14.10.2025
The department alleged:
- Short payment of ₹2,67,300 due to GSTR-1 vs GSTR-3B mismatch
- Excess ITC claim of ₹41,784
However, the petitioner contended that:
- The amount of ₹2,67,300 was already paid on 30.07.2018
- Despite this, demand was raised again and recovery proceedings were initiated
Key Legal Issue
Whether GST demand and recovery can be sustained when the same tax amount has already been paid prior to issuance of the show cause notice?
Arguments
Petitioner
- Tax was already paid, hence demand leads to double taxation
- Authorities failed to consider representation
- Recovery action was unjustified
Department
- Did not dispute payment entirely
- Argued that payment requires proper verification and documentation
Court Observations
