Tvl.S.Baskar vs. The Assistant Commissioner (St)
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Before: and
This writ petition challenges the impugned order dated 18.11.2025, which is an assessment order passed under Section 73 of the TNGST Act 2017. 2. I have heard the learned counsel for the petitioner and the learned Government Standing Counsel representing the revenue.
By the impugned order, the assessment was made 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 summarized 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 The respondent alleged suppression of turnover based on mismatch between GSTR-7
and GSTR-3B returns for AY 2024-25. GST- TDS entries reflected in GSTR-7 were treated as proof of taxable
outward supplies
allegedly executed
for Kodanthur Panchayat. Based on such entries, tax of Rs.2,49,372/- together with interest and penalty was levied under Section 73 of the TNGST Act. The petitioner specifically denied execution of any work for the concerned Panchayats during the relevant assessment year. Mere reflection of GST- TDS in GSTR-7 cannot by itself establish the existence of a taxable
supply
without verification of the underlying transaction. The petitioner immediately approached the Panchayat authorities and subsequently
obtained proceedings dated 17.03.2026 from the Block Development Officer, Ka.Paramathi Panchayat Union, certifying that no work was executed by the petitioner in the Kodanthur Panchayats. The said
official
certificate completely demolishes the factual basis of the assessment. Therefore, the demand is founded
on erroneous assumption and is liable to be set aside. The petitioner had in fact filed a detailed reply the denying the allegations and informing the respondent that no such works had been executed. Since the relevant records were in the custody of the Panchayat authorities, the petitioner was dependent upon Government authorities for obtaining
supporting documents. While the petitioner was actively pursuing the records and awaiting
official confirmation,
the respondent proceeded to finalize the assessment. The non-production of documents was neither wilful nor deliberate but was due to circumstances beyond the petitioner's control.
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 3/6 https://www.mhc.tn.gov.in/judis 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. Since, in this case it is stated that the concerned Panchayat itself has given a certificate that no such work is undertaken, no additional condition is imposed.
In view of this, the writ petition is allowed on the following terms:- i. The impugned order dated 18.11.2025 shall stand set aside, and 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 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 stand raised; 4/6 https://www.mhc.tn.gov.in/judis iv. No costs. Consequently the connected miscellaneous petition shall stand closed.
2026 NCC : Yes/No sji TO The Assistant Commissioner (ST), Karur - 2 Assessment Circle, Commercial Taxes Buildings, North Pradhakshnam Road, Karur – 6390010. 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J. sji ORDER IN WP(MD) No.16563 of 2026 Date : 17.06/2026 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.