Tvl. Kaviya Traders vs. The Deputy State Tax Officer 1

This writ petition challenges the impugned orders passed in GSTIN 33AVSPP4490Q12ZJ/2019-20 dated 04.02.2025 and the consequential DRC-07 Summary Order bearing Reference No. ZD330225041572S dated 05.02.2025 for the assessment year 2019-20 which is an assessment order passed under Section 73 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- 2 https://www.mhc.tn.gov.in/judis 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: Discrepancies found/grounds on which the order is passed Explanation offered by the Assessee on merits Explanation for not availing the opportunity 3 https://www.mhc.tn.gov.in/judis The proceedings were originally initiated alleging excess ITC based on mismatch between Form GSTR-2A and Form GSTR- B. However, while passing the rectification order dated 04.02.2025, the respondent abandoned the original allegation and confirmed demand of Rs.18,301/- on an altogether different ground, namely mismatch between Form GSTR-1 and Form GSTR-3B. No fresh show cause notice proposing such allegation was issued. The demand was thus confirmed on a ground never forming part of the original proceedings. The impugned order was passed under the guise of rectification under Section 161 of the TNGST Act. The petitioner submits that there is absolutely no discrepancy between Form GSTR-1

and Form GSTR-3B for the relevant assessment yerar. Annual returns

reconciliation statements and return extracts clearly establish that the outward

supplies reported in GSTR-1 fully correspond with the tax discharged

through GSTR-3B. The respondent could not convert a proceeding relating to GSTR-2A mismatch into a GSTR-1 mismatch dispute through a rectification order. Further

the earlier assessment order itself had been erroneously passed in the name of another dealer, namely Tvl.New Babys Corner,

demonstrating complete non-application of mind. The impugned demand is therefore, beyond the scope of the show cause notice and wholly without juri iction. The entire proceedings were uploaded only in the GST portal and no effective physical

communication was served on the petitioner. Being a small trader with limited GST knowledge, the petitioner had entrusted GST compliance and portal monitoring to a part-time accountant. The accountant failed to inform the petitioner about the notices and assessment proceedings resulting

in non- participation. Consequently, the original proceedings culminated in an ex-parte order. The petitioner became aware of the issue only after discovering

that an assessment order relating to another taxpayer had been uploaded against his GSTIN 4.Considering the submissions made by the learned counsel that even the discrepancies proposed in the showcase notice and the ultimate order that are passed are different and also some third person's GST number is also referred and further considering the fact that the disputed tax amount has 4 https://www.mhc.tn.gov.in/judis already been recovered, no additional condition is imposed. The petitioner will be at liberty to raise all these grounds before the authority. 5.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 without condition. 6.In view thereof, the Writ Petition is allowed on the following terms: 5 https://www.mhc.tn.gov.in/judis (i)The impugned

orders

passed in GSTIN 33AVSPP4490Q12ZJ/2019-20 dated 04.02.2025 and the consequential DRC-07 Summary Order bearing Reference No. ZD330225041572S dated 05.02.2025 for the assessment year 2019-20 shall stand set aside, and the matter shall stand remanded back to the file of the respondent. (iii)Within four weeks from the date of receipt of the web copy of the order, it will be open for the assessing authority to issue a fresh show cause notice, which can include whatever the defects either the same defect or any such altered discrepancies also, which shall include the proper discrepancy and it will be open for the petitioner to submit a reply and thereafter, the authority to re-consider the issue and pass orders. (v)No costs. Consequently, connected miscellaneous petition is closed. 23.06.2026 NCC:Yes/No 6 https://www.mhc.tn.gov.in/judis Ns To The Deputy State Tax Officer-1, Tirunelveli Junction Assessment Circle, Commercial Taxes Buildings, Tirunelveli D.BHARATHA CHAKRAVARTHY, J. Ns 7 https://www.mhc.tn.gov.in/judis and W.M.P(MD)No.12781 of 2026 23.06.2026 8 https://www.mhc.tn.gov.in/judis