Tvl. A.K.Traders vs. The Deputy State Tax Officer - 1

This writ petition challenges the impugned order dated 06.12.2025 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- 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, 2 https://www.mhc.tn.gov.in/judis 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 The respondent disallowed the exemption claimed on sale of fresh vegetables and treated the entire turnover as taxable turnover. The respondent assumed that the petitioner was dealing in goods classifiable under HSN 0711 relating to provisionally

preserved vegetables. Based on such classification, tax of Rs. 9,27,770/- along with interest and penalty was levied under Section 73 of the TNGST Act. The exemption claimed on outward

supplies

of vegetables was rejected for want of supporting records. The impugned assessment order was passed ex-parte. The petitioner is exclusively engaged in the purchase and sale of fresh vegetables procured from farmers, agricultural markets and wholesale

vegetables markets and sold in the same

from without processing preservation or value

addition,

fresh vegetables falling under Chapter 7 are specifically exempt under Entry No.9 of Notification

No.2/2017- Central Tax (Rate) dated 28.06.2017. The respondent has not produced any inspection report, stock verification,

invoice,

analysis of independent material to establish that the petitioner dealt in preserved vegetables covered under HSN

merely

on assumptions and not on evidence. Therefore, the denial of exemption and consequential levey of tax are wholly unsustainable in law. The entire proceedings were uploaded only in the GST portal and no effective physical

communication was served upon 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, hearing intimations and assessment

proceedings. Consequently, the petitioner remained unaware of the proceedings and could not produce purchase bills, market receipts, stock registers

and other supporting documents. The impugned assessment order was therefore passed ex- parte without affording an effective opportunity of hearing. 4.Considering the nature of the discrepancies noted, the 3 https://www.mhc.tn.gov.in/judis 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 any condition. 5.In view thereof, the Writ Petition is allowed on the following terms: (i)The impugned order dated 06.12.2025 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 4 https://www.mhc.tn.gov.in/judis 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, any attachment of the bank account made pursuant to the impugned order shall raised. (iv)No costs. Consequently, connected miscellaneous petition is closed. 18.06.2026 NCC:Yes/No Ns To 1.The Deputy State Tax Officer – 1, Sankarankovil Assessment Circle, Commercial Taxes Buildings, Sankarankovil. D.BHARATHA CHAKRAVARTHY, J. Ns 5 https://www.mhc.tn.gov.in/judis and W.M.P(MD)No.12442 of 2026 18.06.2026 6 https://www.mhc.tn.gov.in/judis