K Kirubakaran vs. The Assistant Commissioner (St)

This writ petition challenges the impugned order dated 08.01.2026 which is an assessment order passed under Section 76 of the GST Act 2017. 2.I have heard the learned counsel for the petitioner and the learned Additional Government Pleader representing the revenue. 3.By the impugned order, 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 2 https://www.mhc.tn.gov.in/judis below: Discrepancies found/grounds on which the order is passed Explanation offered by the Assessee on merits Explanation for not availing the opportunity (i)Tax collected amounts not paid to Government. (ii)Penalty under Section 76 and interest under Section 50 of the GST Act As far as the discrepancy pointed out by the respondent, whatever work he had executed was properly reported and tax paid. Normally, the work executed to Government department would be reported in those years but the Government departments in most of the cases only on release of their funds report the transactions in their form GSTR07 and pay the TDS tax @ 2%. That is the reasons for the alleged variation. In the absence of any violation of the provisions of the Act, the question of levy of interest under Section 50 and penalty under Section 76 of the GST Act does not arise to the facts of this case The part time accountant failed to notice the fact of issuing of the proceedings uploaded in the portal by the respondent. The respondent had also sent the same through RPAD but due to pressure of work the part time accountant had failed to consult and file an effective reply. Because of the above reasons, the respondent had issued

the Ex-parte impugned order. 4.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 3 https://www.mhc.tn.gov.in/judis 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 without condition. 5.In view thereof, the Writ Petition is allowed on the following terms: (i)Since 100% towards both CGST and SGST amount has already been recovered, the impugned order dated 08.01.2026 shall stand set aside, and the matter shall stand remanded back to the file of the respondent. (ii)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. (iii)Since the impugned order of assessment is set aside, 4 https://www.mhc.tn.gov.in/judis any attachment of the bank account made pursuant to the impugned order shall raised. (iv)No costs. Consequently, connected miscellaneous petition is closed. 23.06.2026 NCC:Yes/No To 1.The Assistant Commissioner (St), Thirumangalam Assessment Circle, Commercial Tax Buildings, Thirumangalam. 5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J. Ns and https://www.mhc.tn.gov.in/judis W.M.P(MD)No.12826 of 2026 23.06.2026 https://www.mhc.tn.gov.in/judis