Dual GST Demands for Same Assessment Year Cannot be Sustained in Law: Madras HC [Read Order]
The court held that dual demands under the GST Act for the same assessment year and subject matter cannot be legally sustained.
![Dual GST Demands for Same Assessment Year Cannot be Sustained in Law: Madras HC [Read Order]](https://images.taxscan.in/h-upload/2025/06/24/2053936-dual-gst-assessment-order-taxscan.webp "Dual GST Demands for Same Assessment Year Cannot be Sustained in Law: Madras HC [Read Order]")
The Madurai Bench of the Madras High Court has quashed a second assessment order issued under the Goods and Services Tax ( GST ) Act for the same assessment year, declaring that such dual proceedings are unsustainable in law.
Justice C. Saravanan observed that “Since the present demand pertains to the same assessment year and the same subject matter, dual demands under the respective GST enactments cannot be sustained in law.”
The petition was filed by Tvl. Indo Associates, represented by its proprietor N. Rajesh Kumar. The petitioner sought to challenge an assessment order dated 06.03.2024 for the Assessment Year (AY) 2018-2019, issued by the Deputy State Tax Officer.
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The impugned order had been preceded by notices in Form GST DRC-01A and Form GST DRC-01 issued in December 2021 and February 2022, respectively. However, the petitioner did not respond to these notices or attend the personal hearing, which led to the issuance of the assessment order ex parte.
It was brought to the Court's attention that a previous assessment order for the same AY 2018-2019 had already been passed on 25.04.2022. The same demand, now reiterated in the March 2024 order, was subject to challenge before the Appellate Commissioner via an appeal filed on 07.06.2025 pursuant to a High Court directive issued on 28.04.2025 in W.P.(MD) No.12106 of 2025.
Acknowledging the error, the Additional Government Pleader candidly conceded that there was a duplication of proceedings and that the original demand had already been summarized in Form GST DRC-07 on 26.04.2022.
The Court, noting this, held that the issuance of a second assessment order for the same tax period and liability was impermissible. The bench stated that dual demands under the GST Act for the same assessment year and subject matter cannot be legally sustained.
Accordingly, the High Court quashed the impugned assessment order dated 06.03.2024 and allowed the writ petition.
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