DLF Home Developers Limited Vs Sales Tax Officer Class II (Delhi High Court)
Delhi High Court addressed a writ petition filed by DLF Home Developers Limited challenging a Show Cause Notice (SCN) issued by the Sales Tax Officer. The case involved a dispute regarding Input Tax Credit (ITC) reversal on non-business transactions and exempt supplies. The court noted that a similar SCN had already been issued by the Directorate General of GST Intelligence (DGGI) for the same tax period. Referring to its earlier ruling in a related case, the court emphasized that parallel proceedings by different tax authorities on the same issue could not be sustained. Since the DGGI had already taken cognizance of the matter, the Sales Tax Officer was not permitted to independently adjudicate the demand.
Consequently, the court set aside the impugned demand raised by the Sales Tax Officer to the extent it overlapped with the DGGI’s jurisdiction. It clarified that the DGGI’s proceedings would determine the final outcome of the dispute. The court also restrained the respondents from taking any further action based on the SCN dated May 24, 2024, until the DGGI concluded its adjudication. However, the authorities retained the liberty to initiate proceedings depending on the final order issued by the DGGI. This decision reinforces the principle that multiple authorities cannot conduct simultaneous inquiries into the same tax liability, ensuring a streamlined adjudication process.
