Facts of the Case

Nitender Thakur, engaged in the construction business and registered under GSTIN 07AAFPT1731Q2Z7, was issued a show cause notice dated 04.12.2023 under Section 73(1) of the CGST Act ('first SCN') proposing a demand. A second SCN dated 09.12.2023, allegedly on the same cause of action, was also issued, which culminated in an Order-in-Original dated 19.04.2024 confirming a demand of Rs. 27,69,308/-. The first SCN separately culminated in the impugned Order-in-Original dated 26.04.2024, raising a demand for the same amount on the same transactions. The petitioner's rectification application against the 26.04.2024 order, pointing out the overlap, was rejected on 29.07.2024, prompting the present writ petition.

Issues Involved

  1. Whether two Orders-in-Original, arising from two show cause notices issued days apart on the same cause of action, can both stand where they impose duplicate demands for identical transactions.
  2. Whether rejection of a rectification application highlighting such an overlap was sustainable.

Petitioner's Arguments

  • The petitioner contended that the two Orders-in-Original — one already under a pending appeal and the other under challenge here — were duplicate and overlapping in respect of the same transactions, and that the rectification application ought to have been allowed on this basis.

Respondent's Arguments

  • Panel Counsel for GNCTD, under instructions, fairly conceded before the Court that the impugned Order-in-Original dated 26.04.2024 was, in fact, overlapping with the other order dated 19.04.2024.

Court Order / Findings

  • On the Department's concession of overlap, the Court held that both the impugned Order-in-Original dated 26.04.2024 and the Rectification Order dated 29.07.2024 stand quashed.
  • The petitioner's pending statutory appeal against the earlier Order-in-Original dated 19.04.2024 was directed to proceed on its own merits, since it remained the sole surviving demand for the transactions in question.

Important Clarification

  • Where the Department itself raises two separate show cause notices and orders for the same cause of action, resulting in a duplicate demand, the later, overlapping order is liable to be quashed outright rather than being fought through appeal — the assessee's remedy against the surviving, non-duplicate order continues unaffected in the ordinary appellate channel.

Sections Involved

  • Section 73(1), Central Goods and Services Tax Act, 2017 – show cause notice for tax not paid or short paid.
  • Section 107, Central Goods and Services Tax Act, 2017 – statutory appeal against an Order-in-Original, which continued in respect of the non-overlapping order.

Decision – In Favour of

Allowed; entirely in favour of the Assessee, with the duplicate order and its rectification-rejection both quashed.

Case Details

  • Court: High Court of Delhi at New Delhi
  • Case No.: W.P.(C) 17601/2024 and CM APPL. 74886/2024
  • Coram: Justice Prathiba M. Singh and Justice Shail Jain
  • Date of Order: 28.08.2025

Link to Download the Order

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