Facts of the Case

Tvl.Nellai Enterprises filed five connected writ petitions challenging assessment orders passed under Section 73 of the TNGST Act, 2017 for assessment years 2017-18 through 2020-21, alleging that the orders were cryptic, non-speaking and issued in violation of Section 6(2)(b) of the TNGST Act due to overlapping proceedings on the same GSTIN across multiple show cause notices. For the 2017-18 year specifically, the petitioner had already suffered an earlier adverse assessment order for the same period and preferred a separate appeal, while a later order dated 3 February 2025 raised a fresh demand for the same year on different defects. The petitioner had already deposited substantial amounts for some years, including Rs. 2,41,688 each towards CGST and SGST for 2019-20.

Issues Involved

  1. Whether multiple assessment orders touching the same GSTIN and overlapping assessment periods, issued via separate show cause notices, breach Section 6(2)(b) of the TNGST Act and render the orders liable to be set aside as cryptic and non-speaking.
  2. What consolidated remedial directions are appropriate where partial payments have already been made for some years and none for others.

Petitioner's Arguments

  • The impugned orders across the different assessment years overlapped in subject matter for the same GSTIN, were cryptic and non-speaking, and were passed in violation of Section 6(2)(b) of the TNGST Act.
  • The petitioner had already paid substantial amounts for certain assessment years and only a fresh consolidated adjudication, rather than piecemeal separate orders, would properly account for what had already been deposited and avoid double demands.

Respondent's Arguments

  • The department's counsel fairly conceded that the demand confirmed on 3 February 2025 for assessment year 2017-18 pertained to defects distinct from the earlier order under separate appeal for the same year, seeking to justify the parallel proceedings on that basis.

Court Order / Findings

  • Considering the overlap in proceedings and those substantial part-payments already made, the Court directed that the respondent pass a single consolidated order afresh for each assessment year, rather than allow the overlapping notices/orders to stand independently.
  • It directed the petitioner to deposit 10% of the disputed tax for the assessment year (2020-21) where no deposit had yet been made, and to file a consolidated reply to all the show cause notices within 30 days.
  • Subject to compliance, the respondent was directed to endeavour to pass a fresh consolidated order for each assessment year within three months, treating the previously impugned orders as corrigenda to the respective show cause notices; non-compliance would allow the department to proceed as if the writ petitions were dismissed.

Important Clarification

  • Where a taxpayer is subjected to multiple, overlapping assessment proceedings on the same GSTIN and assessment year(s) via separate notices — raising a Section 6(2)(b) concern — the appropriate remedy is not necessarily to strike down each order individually but to direct the department to pass one consolidated order per assessment year, taking into account amounts already paid.
  • A taxpayer's willingness to make part-payments and file a consolidated reply is treated as a relevant equitable factor in crafting such consolidated-order directions, alongside a modest fresh deposit (here 10%) for any year where no payment has yet been made.

Sections Involved

  • Section 73, TNGST Act, 2017 – determination of tax not involving fraud, under which the multiple show cause notices and orders were issued.
  • Section 6(2)(b), TNGST Act, 2017 – bars initiation of overlapping/parallel proceedings on the same subject matter by different authorities, the provision alleged to be violated.
  • Form GST DRC-01 – the show cause notices issued for each assessment year under challenge.

Decision – In Favour of

The decision is in favour of the assessee, with all five writ petitions allowed and the department directed to pass consolidated fresh orders per assessment year rather than persist with overlapping proceedings.

Case Details

Court: Madras High Court, Madurai Bench. Case No.: W.P.(MD) Nos. 23135 to 23139 of 2025 & connected W.M.P.(MD) Nos. Coram: Hon'ble Mr. Justice C. Saravanan. Date of Order: 25 August 2025.

Link to Download the Order

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