Tvl.Sri Amman Auto Spares vs. The Assistant Commissioner / The Deputy Commercial Tax Officer

This Writ Petition is taken up for final hearing at the time of admission with the consent of the learned counsel for the petitioner and learned Government Advocate (Tax) for the respondent.

The petitioner is before this Court against the impugned Order-in- Original in DRC 07 dated 24.12.2025 bearing reference in Ref.No. ZD3312253723797/2021-22, whereby the proposal in Show Cause Notice in DRC 01 dated 25.09.2025 has been confirmed for the tax period 2021-22. 2/7 https://www.mhc.tn.gov.in/judis

The case of the petitioner is that during the peak of COVID, the petitioner was constrained to divert the business into sale of vegetables and fruits and that the same was also reflected in GSTR 01 as non-GST supplies and therefore, the petitioner was not liable to pay tax. However, the petitioner failed to report the same in GSTR 3B/Monthly Return.

It is noticed that the petitioner was also issued with an intimation in ASMT 10 dated 21.08.2025, which was not replied to. In response to the Notice in DRC 01, the petitioner has merely enclosed a few sample invoices to substantiate that the petitioner was also engaged in the sale of exempted commodities, namely, fruits and vegetables.

The reply that has been filed by the petitioner is inadequate, as the petitioner should have properly tabulated the purchases together with the payment and the details of the invoices for the officer to pass a speaking order. Otherwise, it will be construed as if the petitioner has evaded payment of tax. 3/7 https://www.mhc.tn.gov.in/judis

Hence, balancing the interests of the petitioner as also the Department, I am inclined to remit the case back, subject to the petitioner agreeing for pre- deposit.

At this stage, the learned counsel for the petitioner submits that the petitioner is willing to deposit 20% of the disputed tax as a condition to proceed de novo adjudication. To that effect, he has made an endorsment in the Court Bundle as under: “The petitioner undertakes to deposit 20% of the disputed tax.”

In view of the above, the impugned order is quashed and the case is remitted back to the respondent to pass a fresh order subject to the petitioner depositing 20% of the disputed tax in cash from the petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order. Needless to state, any amount recovered from the petitioner shall be adjusted towards the aforesaid pre-deposit condition. 4/7 https://www.mhc.tn.gov.in/judis

Within such time, the petitioner shall also file a reply to the Show Cause Notice in DRC 01 dated 25.09.2025 together with requisite documents to substantiate the case by treating the Impugned Order dated 24.12.2025 as an addendum to the Show Cause Notice dated 25.09.2025. 11. In case the petitioner complies with the above stipulations, the respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such reply / pre-deposit.

In case the petitioner fails to comply with any of the stipulations, the respondent is at liberty to proceed against the petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine today.

Needless to state, before passing any such order, the respondent shall give due notice to the petitioner. 5/7 https://www.mhc.tn.gov.in/judis

This Writ Petition stands disposed of, with the above observations. No costs. Consequently, connected Writ Miscellaneous Petition is closed. Index : Yes / No 18.08.2026 Internet : Yes / No apd To The Assistant Commissioner /, The Deputy Commercial Tax Officer, Palani 2 Assessment Circle, Integrated Commercial Tax Offices, Near Periya Avudaiyar Kovil Arch, Kothaimangalam Village, Palani, Dindigul – 624 618. 6/7 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.

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