Impermissible to reopen the same issue in the subsequent show cause notice, where issue already decided in previous order

Facts of the Case:-  In this case, the department issued a show cause notice to the petitioner to explain the reasons for difference in output tax liability as between GSTR-1 and GSTR-3B returns. However, while order was in operation, another show cause notice was issued against petitioner in respect of three issues, including reconciliation of GSTR-1 and GSTR-3B which was already subject of aforesaid adjudication order .

The Petitioner show cause notice issued on 28.12.2023, citing that one of the issues raised, regarding a difference in output tax liability between GSTR-1 and GSTR-3B returns, had already been addressed in an order dated 23.12.2023. The Petitioner argues that once an issue is decided by an assessment order, it cannot be reopened in a subsequent notice.

Held:-  The Court observed that upon examining previous adjudication order and impugned show cause notice, it was clear that issue in impugned show cause notice was same issue determined under order. It was not open to department to reopen same issue after issuing earlier order.

Therefore, the Court directed the petitioner to respond to SCN only insofar as it pertained to issues of declaration of ineligible ITC and invalid ITC under Section 16(4) and as regards to issue relating to reconciliation of GSTR-1 and GSTR-3B, the impugned SCN would be set aside. 

The petitioner is allowed to raise any contentions while responding to the notice. The connected miscellaneous petitions are closed, and no costs are awarded.

To read the complete judgment 2024 Taxo.online 802