Magaliswamy Sriram vs. The Deputy State Tax Officer - 2
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Before: and
This writ petition challenges the impugned order dated 16.08.2024 which is an assessment order passed under Section 73 of the TNGST Act, 2017, for the assessment year 2019-20. 2. 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: 2/6 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 Short payment of GST on account of the difference between
the taxable value declared
in GSTR-07 and the taxable value declared in GSTR3B for the tax period 2019-20 under Section 73 of GST Act. The difference between the taxable value declared in GSTR-07 and the taxable value declared in GSTR3B for the period 2019-20 is purely a reconciliation issue arising from reporting discrepancies and does not represent short payment of tax or evasion of tax. As the payments were not made by the government departments to whom he had undertaken work contract service in the respective year itself and were pending for years together, he could not reconcile the work details/receipt details with the details furnished by the department in GSTR-07 with actual receipts. Hence, the petitioner had no intent to evade payment of tax and was not willful and it was an inadvertent error of fact committed by the auditor. 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 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 3/6 https://www.mhc.tn.gov.in/judis 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 16.08.2024 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; 4/6 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-620020. 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J. sji
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.