Tvl. Nesta vs. The State Tax Officer / The Commercial Tax Officer
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The petitioner, Tvl. Nesta, represented by its Proprietor Sathesh Kumar, filed a writ petition challenging an assessment order dated December 18, 2025, passed by the respondent, the State Tax Officer/Commercial Tax Officer, Srirangam Assessment Circle. The order pertains to the assessment year 2021-22 and was passed under Section 73 of the TNGST Act, 2017. The assessment order was preceded by a Show Cause Notice dated May 23, 2025, and personal hearing notices. The petitioner had not availed the opportunities provided. 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 offered to pre-deposit 25% of the disputed tax.
Held
The Court quashed the impugned assessment order dated December 18, 2025, and remitted the case back to the respondent for a fresh assessment. This decision was made subject to the petitioner depositing 25% of the disputed tax in cash from its Electronic Cash Register within thirty days of receiving a copy of the order. The petitioner was also directed to file a reply to the Show Cause Notice dated May 23, 2025, along with supporting documents, treating the impugned order as an addendum to the show cause notice. The respondent was instructed to pass a final order on merits within three months of the petitioner's compliance. The Court noted that the petitioner had not availed the opportunities provided earlier and that the appeal period had expired, but granted relief based on the petitioner's willingness to pre-deposit a portion of the disputed tax. The Court also stipulated that if the petitioner failed to comply with the directions, the respondent could proceed to recover the tax as if the writ petition was dismissed. The respondent was also directed to provide due notice before passing any further order.
Key Issues
1. Whether the impugned assessment order dated December 18, 2025, passed under Section 73 of the TNGST Act, 2017, is liable to be quashed for being cryptic, non-speaking, illegal, arbitrary, and without jurisdiction, requiring a fresh assessment order after affording an opportunity of being heard? Petitioner's contention: The petitioner argued that the assessment order was defective and sought to quash it, offering to pre-deposit 25% of the disputed tax for a de novo adjudication. Respondent's contention: The respondent's counsel took notice and did not appear to contest the merits of the petition, but rather consented to the matter being heard at the admission stage. No specific arguments were recorded for the respondent regarding the validity of the assessment order or the petitioner's plea.
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 33BAGPS9535M1Z2/2021-22 bearing Reference No. ZD3312252977725 dated 18.12.2025 for the assessment year 2021-22 passed by the respondent under section 73 of TNGST Act 2017, which was preceded by a Show Cause Notice in DRC 01 dated 23.05.2025 and the personal hearing 2/6 https://www.mhc.tn.gov.in/judis notices dated 01.07.2025, 09.07.2025 and 10.10.2025. However, the 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 the petitioner is willing to pre-deposit 25% of the disputed tax 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 Petition undertakes to pay 25% 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 25% 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.
Within such time, the petitioner shall also file a reply to the Show Cause Notice in DRC 01 dated 23.05.2025 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 23.05.2025. 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. 4/6 https://www.mhc.tn.gov.in/judis
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 State Tax Officer / The Commercial Tax Officer, Srirangam Assessment Circle, Commercial Taxes Buildings, Srirangam. 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.