A writ petition is been addressed by the Delhi High Court which has been submitted via DLF Home Developers Limited contesting a Show Cause Notice (SCN) issued by the Sales Tax Officer.
The same matter comprises a dispute for the Input tax credit (ITC) reversal on non-business transactions and exempt supplies. It was observed by the court that a similar SCN has been furnished before via the Directorate General of GST Intelligence (DGGI) for the same tax period.
The court directing to its earlier judgment in a pertinent matter stresses that parallel proceedings via distinct tax authorities on the identical problem cannot be kept. The sales tax officer was not allowed to independently adjudicate the demand as the Directorate General of GST Intelligence (DGGI) had taken cognizance of the case before.
Therefore the court has set aside the impugned demand which the sales tax officer raised to the extent it overlapped with the jurisdiction of DGGI. It mentioned that the proceedings of DGGI shall discover the final result of the dispute.
The court denied the respondents from taking any measure based on the show cause notice (SCN) on May 24, 2024, until the DGGI concluded its adjudication. However, the authorities retained the liberty to start the proceedings laid on the final order that the DGGI issued.
The same decision supports the principle that various authorities could not perform simultaneous inquiries into the identical tax obligation, ensuring a facilitated adjudication procedure.
| Case Title | DLF Home Developers Limited vs. Sales Tax Officer Class II |
| Citation | W.P.(C) 11037/2024, CM APPL. 45607/2024 (Stay) & CM APPL. 52999/2024 |
| Date | 26.09.2024 |
| For the Petitioner | Ms Kavita Jha, Mr Shammi Kapoor, and Ms Swati Agarwal |
| For the Respondents | Mr Rajeev Aggarwal, Mr Shubham Goel & Mr Mayank Kamra, Ms Suhani Mathur, Mr Jatin Kumar Gaur Mr Pushpendra Prashad Thapliyal |
| Delhi High Court | Read Order |
