Tvl. Jebamani Nader Traders vs. The Deputy State Tax Officer - 2 / The Deputy Commercial Tax Officer
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The petitioner, Tvl. Jebamani Nader Traders, filed a writ petition challenging an assessment order dated December 18, 2025, passed by the Deputy State Tax Officer - 2, Nanguneri Assessment Circle, under Section 73 of the TNGST Act, 2017, for the assessment year 2021-22. The assessment order was preceded by a Show Cause Notice dated September 27, 2025. The petitioner had not availed the personal hearing offered in the show cause notice and consequently suffered the impugned order. The writ petition was filed on July 21, 2026, after the limitation period for filing an appeal under Section 107 of the GST enactments had expired. The petitioner contended that their paddy trading activities were exempted under the GST enactments and offered to pre-deposit 10% of the disputed tax.
Held
The Court quashed the impugned assessment order dated December 18, 2025. The primary reason for this decision was the petitioner's submission that their supply of paddy is exempted under the GST enactments and their willingness to pre-deposit 10% of the disputed tax. The Court remitted the case back to the respondent for fresh adjudication. The petitioner was directed to deposit 10% of the disputed tax in cash from their Electronic Cash Register within thirty days of receiving the order. Additionally, the petitioner was required to file a reply to the Show Cause Notice dated September 27, 2025, along with supporting documents, treating the impugned order as an addendum to the show cause notice. The respondent was directed to pass a final order on merits within three months of receiving the reply and pre-deposit, after giving due notice to the petitioner. The Court noted that the concession was granted in view of the petitioner's submission regarding exemption and the undertaking to pre-deposit.
Key Issues
1. Whether the assessment order dated December 18, 2025, passed by the respondent is liable to be quashed as cryptic, non-speaking, illegal, arbitrary, and without jurisdiction. Petitioner's arguments: The petitioner argued that the assessment order was passed without proper adjudication and that their business activity of paddy trading is exempted under the GST enactments. They also submitted an undertaking to pre-deposit 10% of the disputed tax as a condition for de novo adjudication. Revenue's arguments: The respondent, represented by the learned Counsel for the State of TN, took notice of the writ petition. No specific arguments were recorded for the respondent regarding the merits of the case, beyond acknowledging the notice.
Sections Cited
Section 73, Section 107
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Before: and
Mr.R.Parthiban, 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 GSTIN 33AMJPJ8668E1ZT/2021-22 bearing Reference No. ZD331225298423D dated 18.12.2025 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 27.09.2025, wherein the petitioner was also called upon to appear for personal hearing. However, the 2/6 https://www.mhc.tn.gov.in/judis petitioner had not taken advantage of the same and thus, suffered the impugned Order dated 18.12.2025. 4. It is noticed that the limitation for filing an appeal under Section 107 of the respective GST enactments, 2017 against the impugned Order has already expired. The present Writ Petition has been filed only on 21.07.2026. 5. At this stage, the learned counsel for the petitioner submits that as the petitioner is engaging in paddy 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 writ petitioner undertakes to pay 10% of the disputed tax.”
In view of the above, the impugned order is quashed and the case is 3/6 https://www.mhc.tn.gov.in/judis 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 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 27.09.2025 together with requisite documents to substantiate the case by treating the Impugned Order dated 18.12.2025 as an addendum to the Show Cause Notice dated 27.09.2025. 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 4/6 https://www.mhc.tn.gov.in/judis 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.
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, Nanguneri Assessment Circle, Commercial Taxes Buildings, Nanguneri. 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.