Abarna Enterprises Vs Deputy State Tax Officer -1 (Madras High Court)
The Madras High Court disposed of two connected writ petitions arising from assessment orders passed for the same tax period, namely FY 2021–2022. The Court observed that two separate assessment orders had been issued against the same assessee for the same discrepancies and assessment year, which was impermissible. Accordingly, the assessment order dated 09.10.2025 was quashed, as the other order covered not only the same discrepancies but also an additional issue. The Court permitted the Department to proceed with determining the assessee’s liability under the surviving assessment order.
With respect to the second writ petition, the Court noted that the assessment order dated 18.12.2025 had been passed ex parte due to the assessee’s failure to participate in the proceedings. The discrepancies identified included mismatch in turnover between GSTR-3B and GSTR-1, excess claim of input tax credit compared to GSTR-2A, and late filing fees for GSTR-1. The assessee attributed these discrepancies to incorrect reporting by its consultant. As for non-participation, the assessee submitted that it was unaware of the show cause notice and subsequent reminders, as its GST registration had been cancelled prior to issuance, and notices were uploaded only on the GST portal without further communication.
