Vinayak Enterprises vs. The Deputy Commissioner (St)
Original PDF →No AI summary yet for this judgment.
Before: and
This writ petition challenges the impugned assessment order, DRC 07 dated 22.12.2025 bearing a Reference No. ZD331225330206W passed by the 2nd respondent and consequential attachment notice bearing Reference No. A4/04/2025 dated 19.05.2026 passed by the 1st respondent, which is an assessment order passed under Section 73 of the TNGST Act 2017. 2. I have heard the learned counsel for the petitioner and the learned Government Pleader representing the revenue.
By the impugned orders, the assessment was made ex parte because the petitioner did not utilise the opportunities provided. The discrepancies and grounds on which the assessment order was issued, the dealer’s explanation on merits, and the reasons for not participating in the assessment proceedings are summarised briefly and presented in a table below: 2 https://www.mhc.tn.gov.in/judis Discrepancies found/Grounds
on which the order is passed Explanation offered by the Assessee on merits Explanation for not availing the opportunity Excess availment of ITC Interest under Section 50 for late reporting of invoices Late fee for belated filing of GSTR 1 The Petitioner respectfully submits that he has duly maintained books of accounts, purchase registers, tax invoices, GST returns, and all other statutory records as required under the provisions of the CGST/TNGST Act. The transactions in respect of which Input Tax Credit has been claimed are genuine business transactions supported by valid tax invoices, and the relevant records are available both with the Petitioner and on the GST common portal for verification. The Petitioner satisfies the substantive conditions prescribed under Section 16(2) of the Act, including possession of valid tax invoices and receipt of goods and/or services. Had an effective opportunity been granted, the Petitioner would have produced all relevant documents, reconciliations, and supporting materials to substantiate the ITC claim. I am not conversant with computer systems and the online GST portal and had entrusted the responsibility of filing GST returns and attending to all GST-related compliances to a part- time accountant. I was under the bona fide belief that the said accountant would diligently monitor the GST portal and comply with all statutory requirements. However, due to his inadvertence and negligence, the Show Cause Notice and the subsequent assessment order uploaded on the GST portal were not brought to my notice. Consequently, I remained unaware of the proceedings and was deprived of an opportunity to submit my objections,
explanations,
and supporting documents before the authorities. I further submit that my failure to respond to the Show Cause Notice was neither wilful nor deliberate, but solely due to the aforesaid circumstances beyond my knowledge. Had the notice been brought to my attention, I would have promptly appeared before the respondent authorities and furnished all relevant records in support of my case. As a result of my non-awareness of the proceedings, the impugned ex parte assessment order came to be passed without the benefit of my explanation
and supporting documents, causing serious prejudice to me. 3 https://www.mhc.tn.gov.in/judis
Considering the nature of the discrepancies noted, the explanation provided by the assessee and the reason given before this Court for not availing the opportunity, I believe that an opportunity can be granted to the assessee to present their submissions and produce the relevant supporting documents before the respondent assessing officer. This Court has been extending such opportunities on equitable grounds; however, under appropriate conditions. Therefore, an opportunity is granted to the petitioner assessee on the condition of depositing 25% of the disputed tax amount.
In view of this, the writ petition is allowed on the following terms:- i. Within four weeks of receiving the web copy of the order, the petitioner shall deposit 25% of the disputed tax amount with the respondent, without waiting for a certified copy of the order. 4 https://www.mhc.tn.gov.in/judis ii. Upon such deposit, the impugned assessment order, DRC 07 dated 22.12.2025 bearing a Reference No. ZD331225330206W passed by the 2nd respondent and consequential attachment notice bearing Reference No. A4/04/2025 dated 19.05.2026 passed by the 1st respondent shall stand set aside, and the matter shall stand remanded back to the file of the respondents. iii. The assessee shall appear before the respondent without fail and submit their reply and documents in support of their claim, and it is for the respondent to consider the matter afresh and pass orders in accordance with law. iv. Since the impugned order of assessment is set aside, any attachment of the bank account made pursuant to the impugned order shall stand raised. v. No costs. Consequently the connected miscellaneous petitions shall stand closed. 24.06.2026 (5/5) NCC:Yes/No rgm 5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY
, J.
rgm To 1. The Deputy Commissioner(ST), Office of the Assistant Commissioner (ST), Tuticorin.
The Commercial Tax Officer, Office of the Assistant Commissioner (ST), Tuticorin III Circle, C.T.Buildings 282 North Beach Road, Tuticorin - 628 001 and W.M.P(MD)Nos.13047 and 13048 of 2026 24.06.2026 (5/5) 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.