The Telangana High Court addressed the issue of multiple assessment orders being issued for the same tax period under the GST Acts, which led to administrative confusion and legal challenges. Petitioners, including M/s. Lakshmikumaran & Sridharan, argued that such duplicative proceedings violated legal principles and created uncertainty in tax recovery and appeals. In some cases, different orders for the same financial year resulted in conflicting tax liabilities and enforcement actions.
The court examined whether issuing multiple show cause notices and assessment orders for the same period was permissible under Section 73 of the GST Acts. It concluded that such practices were not allowed, as they contradict the legislative framework. The court noted that the State of Telangana had acknowledged the problem and had issued a Standard Operating Procedure (SOP) through a circular on October 14, 2025, to rectify these issues under Section 161 of the TGST Act.
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This SOP empowers assessing officers to identify and correct duplicative orders, consolidating them into a single valid order and canceling erroneous ones within six months. The court directed the swift implementation of this SOP to ensure all affected taxpayers are remedied. Taxpayers retain the right to pursue other legal remedies after the rectification process. The decision aims to streamline tax assessment procedures and uphold the principles of natural justice for taxpayers in Telangana.
Order date: 15 Oct 2025
Parties: M/s. Lakshmikumaran & Sridharan and connected petitioners v. State of Telangana & Ors.
Facts –
- Several petitioners challenged multiple show cause notices and assessment orders issued by the same assessing officers for the same financial year under Section 73 of the TGST/CGST Acts, 2017.
- In some cases, two or more assessment orders were passed for an identical tax period, leading to conflicting liabilities and garnishee proceedings.
- For instance, in W.P. No. 20731/2025, three orders were issued for FY 2018–19, each with different tax and penalty figures; in W.P. No. 30267/2025, a second show cause notice and order were issued even though an earlier proceeding for the same period had been dropped.
- The petitioners contended that this duplication of proceedings was contrary to law, violated principles of natural justice, and created administrative uncertainty in recovery and appeal processes.
Issue –
- Whether the issuance of multiple show cause notices and assessment orders for the same tax period under Section 73 of the GST Acts is legally permissible, and what corrective mechanism may be adopted under Section 161 of the TGST Act to rectify such errors?
Order –
- The Court held that issuing multiple or overlapping assessment orders for the same tax period is impermissible and contrary to the scheme of Section 73 of the GST Acts.
- The Bench noted that the State of Telangana had recognized the issue and formulated a corrective framework through Circular No. CCT’s Ref. No. LIV(2)/33/2025 dated 14.10.2025, prescribing a Standard Operating Procedure (SOP) for rectification under Section 161 of the TGST Act.
- The SOP empowers assessing officers to Identify and rectify duplicative orders within six months where multiple notices or orders exist for the same period and Consolidate a single valid order and cancel erroneous or overlapping ones.
- Accepting the Advocate General’s assurance, the Court directed the department to implement the SOP promptly and rectify such errors under Section 161 for all affected taxpayers.
- It clarified that assessees remain free to pursue other statutory remedies on merits after rectification.
