GST | Separate Demands For Reversal Of Availed ITC & Utilisation Of ITC Is Prima Facie Duplication Of Demand: Delhi High Court

The Delhi High Court has observed that issuing separate GST demands for the reversal of availed Input Tax Credit (ITC) and for the tax payable on the utilization of that same ITC is, prima facie, a duplication of demand. The court was hearing a case where the tax authorities had raised two separate demands against the assessee for the same underlying issue of allegedly ineligible ITC. The High Court noted that this approach seemed illogical, as the demand for tax on utilized credit is essentially a consequence of the reversal of the availed credit. By issuing a stay on the recovery of one of the demands, the court has indicated that the department cannot recover the same amount twice under different headings. This provides relief to the taxpayer and signals to the tax authorities that such duplicate demands are not legally sustainable.