Tvl.Vns Vegetables vs. The State Tax Officer

This writ petition challenges the impugned order dated 27.11.2025 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 te exemption claimed on sale of fresh vegetables and treated the entire turnover of Rs.3,50,55,977/-as taxable turnover. The respondent classified the goods under HSN 0711/2001 relating to preserved vegetables and levled GST of Rs. 42,06,718/- together with interest and penalty under Section 73. The exemption was denied mainly on the ground that the petitioner had not produced sufficient supporting records. The petitioner is exclusively engaged in wholesale trading of fresh vegetables purchased from farmers, agricultural markets and commission agents and sold in the same from without any processing preservation or value addition. Fresh vegetables falling under Chapter 7 are specifically exempt under Notification No.2/2017-Central

Tax (Rate) dated 28.06.2017. The respondent has not recorded any finding or produced any evidence showing that the petitioner dealt in preserved vegetables covered

under HSN 0711/2001. No inspection stock verification invoice

analysis or independent enquiry was conducted before

denying

the exemption. The demand is therefore

based

on anerroneous classification assumptions and complete non-application of mind. The petitioner had submitted a reply explaining that the turnover related entirely to exempt supplies of fresh vegetables and had also uploaded available invoice and supporting documents. The petitioner genuinely believed that the documents furnished were sufficient to establish the exempt nature of the business. Since the respondent sought additional records, the petitioner required further time to compile purchase bills, sales registers, books of accounts and market

purchase records. Without granting an effective opportunity to produce all supporting documents and substance the exemption claim, the respondent proceeded to finalize the assessment. Consequently, the impugned order came to be passed without proper verification of the records available with the petitioner. 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 27.11.2025 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 State Tax Officer Ambasamudram Assessment Circle, Commercial Taxes Buildings, Ambasamudram D.BHARATHA CHAKRAVARTHY, J. Ns 5 https://www.mhc.tn.gov.in/judis and W.M.P(MD)No.12391 of 2026 18.06.2026 6 https://www.mhc.tn.gov.in/judis