Case Title: M/s Shiva Enterprises v. State of Karnataka & Ors.
Court: High Court of Karnataka, Bengaluru
Petition Number: W.P. No. 258 of 2025 (T-RES)
Category: Assessment — Multiplicity of proceedings / Amnesty Scheme benefit
Date of Judgment: 24 March 2025
Relevant Sections: Sections 73(9) and 128A of the Karnataka GST Act, 2017 (analogous to CGST Act provisions)
Facts (Paras 2–4)
M/s Shiva Enterprises, a proprietorship concern, was subjected to parallel assessment proceedings under Section 73 of the KGST Act by two different officers—the Commercial Tax Officer (Ramanagara) and the Commercial Tax Officer (Audit), Channapatna—for the same tax period (FY 2019–20). Each authority independently passed adjudication orders—dated 27.06.2024 and 31.08.2024, respectively—culminating in two separate DRC-07 demands.
The petitioner challenged these orders on the ground that they were duplicate assessments for the same period and subject matter, contrary to law. The petitioner also sought permission to avail the Amnesty Scheme under Section 128A, which required setting aside the prior orders.
Questions for Determination
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Whether two independent adjudication orders can be sustained for the same tax period, subject matter, and assessee under Section 73(9) of the KGST Act?
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Whether the petitioner should be allowed to avail the Amnesty Scheme benefit after quashing such duplicate orders?
Observations (Paras 4–5)
The Court observed that two separate orders by different officers under Section 73(9) for the same period and issue were impermissible in law. It reaffirmed that multiplicity of proceedings against the same assessee on identical grounds undermines fairness and violates administrative coherence.
Justice S.R. Krishna Kumar also took note of the petitioner’s bona fide intention to settle dues under the Amnesty Scheme (Section 128A, KGST Act). Hence, to prevent prejudice and ensure compliance with law, both orders were required to be annulled and the matter remitted to the jurisdictionally competent officer (Ramanagara) for fresh consideration.
Judgment (Para 5)
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The writ petition was allowed.
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Both adjudication orders dated 27.06.2024 (Annexure A) and 31.08.2024 (Annexure B) were set aside.
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The matter was remanded to the Commercial Tax Officer, Ramanagara, to re-assess and pass a fresh order in accordance with law.
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The petitioner was directed to appear on 26.03.2025 at 11:00 a.m. and the officer was to complete the reassessment by 28.03.2025.
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Liberty was granted to the petitioner to apply for Amnesty Scheme benefits under Section 128A.
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The higher authority (Joint Commissioner) was directed to extend Amnesty benefits once the reassessment is concluded.
Summary of Referred Cases
| Case / Reference | Issue | Verdict / Principle |
|---|---|---|
| M/s Shiva Enterprises v. State of Karnataka (Present Case) | Duplicate assessments under Section 73 | Held impermissible; both orders quashed and matter remitted to one authority; Amnesty Scheme to be made available. |
Between Fine Lines
The ruling underscores that only one adjudication proceeding can exist for a given tax period and that parallel actions by different wings of the GST Department are legally untenable. Businesses facing overlapping demands for the same period can rely on this precedent to seek quashing of duplicate orders. It also reinforces judicial support for enabling taxpayers to benefit from Amnesty Schemes if they act in good faith.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
