Magaliswamy Sriram vs. The Deputy State Tax Officer 2
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Cause title — parties, addresses and appearances
ORDER This writ petition challenges the impugned order dated 20.08.2024 which is an assessment order passed under Section 73 of the TNGST Act, 2017, for the assessment year 2019-20. 1/5 https://www.mhc.tn.gov.in/judis
I have heard the learned counsel for the petitioner and the learned Government Standing Counsel for the respondent.
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 below: Discrepancies found/Grounds on which the Order is passed Explanation offered by the Assessee on merits Explanation for not availing the opportunity Short payment of GST
when compared
to GSTR-01
& GSTR-3B, mismatch of credit between
credit availed and credit figuring in GSTR 2A for the tax period
2019-20 under Section 73 of GST Act GSTR-1 is merely a reporting statement, not a tax payment return; thus, any difference is a reconciliation issue rather than tax evasion. Concerning GSTR-2A and GSTR-3B credit mismatches for the period before 01.01.2022 ITC cannot be denied solely because invoices do not reflect in GSTR-2A. Without statutory mandates or evidence of supplier, non-payment, denying ITC based on non-reflection in GSTR-2A is legally unsustainable. All the notices and orders were served in the web portal. The petitioner did not notice the show cause notice in the web portal.
Considering the nature of the discrepancies noted, the explanation provided by the assessee and the reason given before this Court for not availing 2/5 https://www.mhc.tn.gov.in/judis 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 thereof, this Writ Petition is allowed on the following terms: (i) Within four weeks from the date of receipt of a web copy of this order, the petitioner shall deposit 25% of the disputed tax amount with the respondent, without waiting for a certified copy of the order; (ii) Upon such deposit, the impugned order dated 20.08.2024 shall stand set aside, and the matter shall stand remanded back to the file of the respondent; (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; 3/5 https://www.mhc.tn.gov.in/judis (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 are closed.
2026 sji NCC : Yes/No TO The Deputy State Tax Officer-2, Ponmalai Assessment Circle, Commercial Taxes Department Campus, Trichy - 620 020. 4/5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J. sji
ORDER IN WP(MD) No.17128 of 2026 Date : 22/06/2026 5/5 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.