The Madurai Bench of the Madras High Court has clarified that issuing two separate GST orders for the same discrepancies in the financial year 2021-22 is not permissible. The court granted relief to taxpayers by providing them with a new opportunity for a hearing in their case.
The case revolves around M/s. Abarna Enterprises, led by proprietor Nainar Iyappasamy, has formally contested two assessment orders issued for the FY 2021-22 under the same GSTIN. The petitioner argues that the two GST orders address overlapping discrepancies and claims that they were issued without providing a sufficient opportunity to respond.
Important: How GST Software Handles Notices & Hearings Easily U/S 73
The Court has determined that issuing multiple assessment orders for the same tax period, particularly in cases of discrepancies, is not legally viable. It emphasised that such duplication is not permissible and goes against the principles of proper assessment. This ruling underscores the importance of adhering to established legal standards when conducting tax assessments.
The Court has annulled the initial assessment order issued on 9th October, 2025, emphasising that the subsequent order addressed further discrepancies. In regard to the second order, dated December 18, 2025, the Court observed that it was issued in the absence of the taxpayer’s response to notifications, leading to an ex parte decision.
In consideration of the taxpayer’s explanation regarding the non-receipt of tax notices, attributed to the cancellation of their GST registration, with the notices only being uploaded on the portal, the High Court provided relief based on equitable grounds. Consequently, it annulled the second order and remanded the case to the assessing authority for reconsideration.
The Court has instructed the taxpayer to present themselves before the relevant authority and provide the necessary documentation. Additionally, it has directed the department to issue a new order in compliance with legal standards. The Court also mandated the removal of any bank attachments that were imposed as a result of the initial assessment.
The ruling highlights that duplicate GST assessments are not permissible and emphasises the importance of providing a fair opportunity of hearing to taxpayers.
| Case Title | M/s. Abarna Enterprises Vs. Deputy State Tax Officer -1 |
| Case No. | W.P.(MD) Nos11353 and 11374 of 2026 |
| For Petitioner | Ms P.R.Lavanya |
| For Respondent | Mr R.Suresh Kumar |
| Madras High Court | Read Order |
