Two Separate GST Assessment Orders Cannot Cover Same Discrepancies and Taxpayer: HC

The Madras High Court has clarified that two separate assessment orders cannot cover the same discrepancies in respect of the same petitioner for the same assessment year.

When the Madras High Court heard the case of M/s Abarna Enterprises, it held that two orders cannot pertain to the same discrepancies and assessment year. Consequently, the first impugned order dated October 09, 2025, was quashed. However, the tax authorities continued tax proceedings based on the second impugned order dated December 18, 2025, which included additional discrepancies.

In the second case, the assessee was not given a fair opportunity of hearing; hence, the assessment order was ex parte. Key issues such as a mismatch in turnover between GSTR-1 and GSTR-3B, excess input tax credit (ITC) claims, late fees for belated filing of GSTR-01, etc., were raised by the tax authorities. However, the petitioner claimed that these mistakes were not intentionally made but were instead due to the negligence of their consultant. Further claimed they were not aware of the notices because of their GST registration cancellation.

When the court examined the aforementioned reasons, it found them all genuine. Hence, the court set aside the impugned second order dated December 18, 2025, and sent the case back to the tax authorities for fresh review. The petitioner had been directed to appear before the concerned authorities and submit all the relevant documents and explanations.

The Court also observed that 46% of the disputed tax had already been recovered, which supported granting another opportunity. Additionally, any bank account attachment related to the case was ordered to be removed.