Tvl. Star Charcoal Enterprises vs. The Deputy State Tax Officer-1
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Before: and
This writ petition is filed challenging the impugned order dated 05.12.2025. The same is an order of assessment passed under Section 73 of the Tamil Nadu Goods and Services Tax 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- 2/7 https://www.mhc.tn.gov.in/judis 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: Discrepancies found/grounds
on which the order is passed Explanation offered by the Assessee on merits Explanation for not availing
the opportunity Disallowance
of exemption claimed on outward supply of Charcoal by treating the entire reported exempt turnover as taxable. The turnover pertains to charcoal GST Rate Schedule notified under Notification No.1/2017- Central Tax(Rate) dated 28.06.2017, specifically grants exemption/nil rate in respect of charcoal falling under Heading 4402 and to tax is leviable. The denial of exemption is based on mere assumption without verification of invoices stock records or nature of goods, and is therefore, ununstainable. Petitioner relied on a part-time accountant who failed to inform about notices and hearing. Due to such bona fide lapse, no reply or appearance was made, resulting in an ex-parte order. 3/7 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. Therefore, an opportunity is granted to the petitioner assessee on the condition of depositing 25% of the disputed tax amount. 5.In view thereof, the Writ Petition is allowed on the following terms: (i)Within a period of four weeks from the date of receipt 4/7 https://www.mhc.tn.gov.in/judis of web copy of the 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 11.112025 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. (iv)Since the impugned order of assessment is set aside, any attachment of the bank account made pursuant to the impugned order shall raised. (v)No costs. Consequently, connected miscellaneous petition is closed. 5/7 https://www.mhc.tn.gov.in/judis
2026 NCC:Yes/No Ns To The Deputy State Tax Officer-1, Gandhi Market Assessment Circle, Commercial Taxes Buildings, Trichy. D.BHARATHA CHAKRAVARTHY.,J. Ns 6/7 https://www.mhc.tn.gov.in/judis ORDER MADE IN and W.M.P(MD)No.12133 of 2026 15.06.2026 7/7 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.