Tvl. Uzhavar Sangam vs. The Deputy State Tax Officer-2/
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The petitioner, Tvl. Uzhavar Sangam, represented by its Proprietrix Indira, filed a writ petition challenging an assessment order dated December 10, 2025, passed by the Deputy State Tax Officer-2 for the assessment year 2021-22. This order was issued under Section 73 of the TNGST Act, 2017, following a show cause notice dated September 23, 2025. The petitioner had not availed the opportunity for a personal hearing and consequently suffered the impugned order. The writ petition was filed on July 22, 2026, after the limitation period for filing an appeal under Section 107 of the GST enactments had expired. The petitioner stated that their business involves coconut trading, and the supplies made are exempted under the GST enactments.
Held
The Court quashed the impugned assessment order dated December 10, 2025, and remitted the case back to the respondent for fresh adjudication. This decision was made subject to the petitioner depositing 10% of the disputed tax in cash from their Electronic Cash Register within thirty days of receiving a copy of the order. The Court granted this concession based on the petitioner's submission that their supplies are exempted under the GST enactments and their undertaking to pre-deposit 10% of the disputed tax. The petitioner was also directed to file a reply to the show cause notice dated September 23, 2025, along with supporting documents, within the same period. The respondent was instructed to pass a final order on merits and in accordance with law, preferably within three months of receiving the reply and pre-deposit. The Court also stipulated that if the petitioner fails to comply with these conditions, the respondent is at liberty to recover the tax as if the writ petition was dismissed. The respondent must provide due notice to the petitioner before passing any order. The issue of whether the supplies were indeed exempted was not decided on merits but was a condition for the concession granted.
Key Issues
1. Whether the impugned assessment order dated December 10, 2025, passed by the respondent under Section 73 of the TNGST Act, 2017, is liable to be quashed and the matter remanded for fresh adjudication, considering the petitioner's claim of exempted supplies and willingness to pre-deposit 10% of the disputed tax? Petitioner's arguments: The petitioner contended that their supplies are exempted under the respective GST enactments and expressed willingness to pre-deposit 10% of the disputed tax as a condition for de novo adjudication. They relied on their undertaking to pay 10% of the disputed tax to set aside the impugned order. Revenue's arguments: The respondent, represented by the counsel for the State of TN, took notice of the writ petition. No specific arguments were recorded for the revenue regarding the merits of the case or the petitioner's claim of exemption.
Sections Cited
Section 73, Section 107
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Before: and
M/s.P.Sudarkodi Natchiyar, learned Counsel for State of TN, takes notice for the respondent.
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 Counsel for State of TN for the respondent.
In this Writ Petition, the petitioner has challenged the impugned Assessment Order in Ref.No.ZD331225159097E/2021-22 dated 10.12.2025 for the assessment year 2021-22 passed under section 73 of TNGST Act 2017 by the respondent, which was preceded by a Show Cause Notice in GST DRC 01 dated 23.09.2025, wherein the petitioner was also called upon to appear for personal hearing. However, the petitioner had not taken advantage of the same and thus, suffered the impugned Order dated 10.12.2025. 4. It is noticed that the limitation for filing an appeal under Section 107 of 2/6 https://www.mhc.tn.gov.in/judis the respective GST enactments, 2017 against the impugned Order has already expired. The present Writ Petition has been filed only on 22.07.2026. 5. At this stage, the learned counsel for the petitioner submits that as the petitioner is engaging in coconut tranding, the supply made by the petitioner is exempted under the provisions of respective GST enactments, 2017 and however, the petitioner is willing to pre-deposit 10% of the disputed tax as confirmed by the impugned order as a condition for de novo adjudication.
The learned counsel for the petitioner has also made an endorsement to that effect in the Court Bundle, which is extracted hereunder:-
“The petitioner hereby undertakes to pay 10% of the (Ten percent) disputed tax as a condition to set aside the Impugned Order.”
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 10% 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. The above concession is given only in view of the submission made by 3/6 https://www.mhc.tn.gov.in/judis the learned counsel for the petitioner that the supply made by the petitioner is exempted under the provisions of respective GST enactments, 2017. 8. Within such time, the petitioner shall also file a reply to the Show Cause Notice in GST DRC 01 dated 23.09.2025 together with requisite documents to substantiate the case by treating the Impugned Order dated 10.12.2025 as an addendum to the Show Cause Notice dated 23.09.2025. 9. 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 4/6 https://www.mhc.tn.gov.in/judis give due notice to the petitioner.
This Writ Petition stands disposed of with the above observations. No costs. Consequently, connected Writ Miscellaneous Petition is closed. Index : Yes / No 27.07.2026 Internet : Yes / No apd To The Deputy State Tax Officer -2/ the Deputy Commercial Tax Officer, Rajapalayam 1 Assessment Circle, 141-A, Ground Floor, TP Mills Road, Rajapalayam – 626117. 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.
apd
2026 6/6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.