The Orissa High Court in the case of PALEM ASHOK REDDY VERSUS THE COMMISSIONER, GST & CX COMMISSIONERATE ROURKELA, THE COMMISSIONER, CGST & CX AUDIT COMMISSIONERATE MAHARASHTRA., THE COMMISSIONER CGST & CENTRAL EXCISE AURANGABAD COMMISSIONERATE MAHARASHTRA vide Case No. W. P. (C) No. 15481 of 2025 dated 24.06.2025, has held that where two assessment orders were passed for the same tax period, one ex-parte without service of notice and the other on merits after affording opportunity of hearing, only one valid assessment order can operate at a time. The Court held that Where an order is passed after due process, including hearing and consideration of material evidence, such an order carries higher legal weight and overrides any prior procedural irregularity. It underscores the need for proper service of notice and affording reasonable opportunity to the taxpayer. 

Facts of the Case: In this case, the petitioner was issued an assessment order dated 02.07.2024 by the GST authorities without being served any notice from the Commissionerate at Rourkela. Subsequently, another assessment order dated 12.07.2024 was passed in respect of the same tax period. The second assessment order was issued after due consideration of material records and after granting the petitioner a personal hearing. 

The petitioner challenged the earlier assessment order dated 02.07.2024, on the ground that it was passed without service of notice and hence violative of the principles of natural justice. 

Issue: Whether two assessment orders can simultaneously operate for the same tax period under GST law. Whether the first assessment order passed without notice, is valid in law?

Held that: The Court noted that the first assessment order dated 02.07.2024, having been passed without service of notice, was held to be without jurisdiction and a nullity. Further, The second assessment order dated 12.07.2024 was passed after following due process, including consideration of material on record and opportunity for personal hearing.

The Court observed that only one valid assessment order can subsist at a time for a particular tax period. Multiple orders for the same period would violate the principle of legal certainty and fair adjudication.

The order passed with due hearing and procedural compliance i.e. dated 12.07.2024 was held to be valid and binding, the earlier ex-parte order dated 02.07.2024, passed without serving notice, was declared without jurisdiction and a nullity in law.

The writ petition was allowed, and the ex parte assessment order dated 02.07.2024 was quashed.

To read the complete judgment 2025 Taxo.online 1320