Palem Ashok Reddy Vs Commissioner, GST & CX Commissionerate Rourkela (Orissa High Court)
The Odisha High Court recently addressed a crucial issue concerning the validity of multiple assessment orders for the same financial period in the case of Palem Ashok Reddy vs. Commissioner, GST & CX Commissionerate, Rourkela. The petitioner, Palem Ashok Reddy, challenged an ex parte assessment order dated July 2, 2024, issued by the Rourkela Commissionerate, demanding service tax of over Rs. 5.76 crore for the financial years 2015-16 and 2016-17. This challenge arose because another assessment order for the identical period, dated July 12, 2024, had already been passed by the Nashik Commissionerate after the petitioner’s participation in the assessment proceedings.
The core of the petitioner’s argument was that the ex parte order from Rourkela was invalid due to non-service of notice, a fact supported by postal department acknowledgments indicating the addressee could not be located. Conversely, the Nashik order was a result of a comprehensive assessment where the petitioner had appeared and presented their case. The High Court, after reviewing the facts and hearing both parties, determined that only one operative assessment order can legally subsist for a given tax period. The court emphasized that an order based on the merits of the case, where the taxpayer has had an opportunity to present their arguments and evidence, should take precedence over an ex parte order, especially when the latter was passed without proper notice.
