Tvl.S.Baskar vs. The Deputy State Tax Officer-2
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Before: and
This writ petition challenges the impugned order dated 05.12.2025 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 2 https://www.mhc.tn.gov.in/judis assessment proceedings are summarized 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 alleged suppression
of turnover based on mismatch and between GSTR-7
GSTR-3B returns
for AY 2022-23. GST-TDS entries reflected in GSTR-7 were treated as proof of taxable outward
supplies allegedly executed for Tokkupatty Panchayat and Rajapuram Panchayat. Based on such entries, tax of Rs.1,57,104/-together with interest and penalty was levied under Section 73 of the TNGST Act. The petitioner specifically denied execution of any wark for the concerned Panchayats during the relevant assessment year. Mere reflection of GST- TDS in GSTR-7 cannot by itself establish existence of a taxable
supply
without verification of the underlying the transaction. The petitioner immediately approached the Panchayat authorities and subsequently
obtained proceedings dated 17.03.2026 from the Block Officer, Development Ka.Paramathi Panchayat Union, certifying that no work was executed by the petitioner in the concerned Panchayats. The said official certificate
completely demolishes the factual basis of the assessment. Therefore, the demand is founded on an erroneous assumption and is liable to be set aside. The petitioner had in fact filed detailed reply a denying the allegations 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. 3 https://www.mhc.tn.gov.in/judis
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 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 05.12.2025 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. 4 https://www.mhc.tn.gov.in/judis 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. iv. No costs. Consequently the connected miscellaneous petition shall stand closed. 16.06.2026 Neutral Citation: No rgm 5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY
, J.
rgm To The Deputy State Tax Officer-2, Karur-2 Assessment Circle, 2nd Floor, Combined Commercial Taxes Buildings, RDO Office Campus, North Pradakshnam Road, Karur – 639001. and W.M.P(MD)No.12220 of 2026 16.06.2026 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.