Order Date – 04 September 2024

Parties: DLF Home Developers Limited Vs Sales Tax Officer Class II Avato Ward 107 Special Zone 12 Delhi &Anr.

Facts – 

• The Petitioner, DLF Home Developers Limited, was demanded tax including interest and penalty in respect of ITC to be reversed on non-business transactions and exempt supplies by Respondent no.1. 
• The Petitioner contend that the Directorate General of GST Intelligence issued a show cause notice dated 02.02.2024 for the tax period 01.07.2017 to 31.03.2021, which also includes the demand proposed on the aforesaid issue.

Issue – 

• Whether two authorities can proceed simultaneously in respect of the same issue?

Order – 

• The Hon'ble High Court observed that Respondent no.1 cannot adjudicate a demand, which is also the subject matter of other proceedings. Since, the period covered under the impugned order is also subsumed in the show cause notice issued by the DGGI, both the proceedings cannot be carried on simultaneously.
• The impugned demand is set aside in respect of ITC to be reversed on non-business transactions and exempt supplies. It is clarified that the concerned Authority shall adjudicate the said issue pursuant to a show cause notice dated 02.02.2024 issued by the DGGI.
• The present petition is allowed.