HC Quashes Duplicate GST Orders on GSTR-2A/3B Mismatch

Case Details: Tvl. Vishagan Traders vs. Deputy State Tax Officer-2 [2026] 183 taxmann.com 664 (Madras)

Judiciary and Counsel Details

• Krishnan Ramasamy, J.
• A. Satheesh Murugan for the Petitioner.
• R.Suresh Kumar, AGP for the Respondent.

Facts of the Case

The petitioner challenged two assessment orders passed for the same tax period concerning mismatch between Form GSTR-2A and Form GSTR-3B. It was submitted that pursuant to a show cause notice, the first authority passed an order on the sole issue of GSTR-2A and GSTR-3B mismatch. Subsequently, another show cause notice (SCN) was issued and the second authority passed an order covering two issues, including the same mismatch, thereby separately quantifying the tax demand for the identical issue in both orders. It was contended that such duplication resulted in double taxation for the same subject matter. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the proceedings arose from an assessment under Section 73 of the CGST Act and the Tamil Nadu GST Act and that passing two separate orders on the identical issue of mismatch between Form GSTR-2A and Form GSTR-3B for the same period resulted in duplication and double taxation. The Court observed that service of SCN only through portal upload without furnishing the original notice and without granting personal hearing violated the principles of natural justice in the context of Section 75 read with Section 169 of the CGST Act and the Tamil Nadu GST Act. Accordingly, the Court quashed the order. The matter was remanded to the jurisdictional authority for fresh consideration subject to payment of 25% of the disputed tax.