The Madras High Court has held that the issuance of two GST orders for the same tax period is unsustainable and requires reconsideration. The taxpayer, Andavar Transport, is engaged in the transportation of goods, with the output tax being collected under the Reverse Charge Mechanism (RCM).
The company contested two orders dated 26.04.2024 and 13.08.2024 belonging to the same tax period. The applicant said that there is duplication in the orders. At the time of purchase of vehicles, Input tax credit was shown in auto-populated GSTR 2A and was also shown in the GSTR 3B return submitted by the applicant.
However, as per the order dated 26.04.2024, the entire ITC was reversed from the petitioner’s Electronic Credit Ledger (ECRL). The petitioner claimed that interest u/s 50 of the GST Act cannot be charged for such non-utilisation of ITC.
Mr R. Sethu Prabakaran, the department’s representative, said that both orders dealt with the same problems. They did not challenge the fact that two orders were issued.
Justice Senthilkumar Ramamoothy stated that there is duplication of orders and also noted that there was a reversal of GST ITC from the applicant’s ECRL based on the order dated 26.04. 2024. The court, as per such reasons, quashed the order and remanded the issue for reconsideration.
The department was asked to furnish a chance of hearing to the petitioner and issue fresh orders within 3 months. On these conditions, the petitioner disposed.
| Case Title | Andavar Transport Vs Deputy State Tax Officer |
| Case No. | WP Nos. 21226 & 21227 of 2026 |
| For Petitioner | Mr.Rajkumar P |
| For Respondent | Mr R Sethu Prabakaran |
| Madras High Court | Read Order |
