K S P S Natarajan And Co vs. The State Tax Officer Commercial Tax Officer
Facts
The petitioner, KSPS Natarajan and Co., filed a writ petition challenging an assessment order dated December 17, 2025, passed by the State Tax Officer under Section 73 of the TNGST Act, 2017, for the assessment year 2021-2022, and a consequential rectification order dated April 21, 2026. The petitioner deals with exempted goods and claims that the impugned order was passed ex-parte because they failed to upload supporting documents for exemption due to personal and business circumstances. The petitioner missed the opportunity to reply to the show cause notice. The writ petition sought to quash these orders for violating principles of natural justice, judicial discipline, and being arbitrary and perverse.
Held
The Court held that the impugned assessment order dated December 17, 2025, and the consequential rectification order dated April 21, 2026, were to be set aside. The matter was remanded back to the respondent authority for reconsideration. The Court reasoned that in such cases, it is appropriate to grant the petitioner an opportunity to appear before the authority and present documents supporting their claim, especially when the goods are entirely exempted from tax. The Court noted that the petitioner was within the time limit to file an appeal. Consequently, any bank account attachment made pursuant to the impugned order was to be raised. The Court did not impose the usual condition of depositing 25% of the disputed amount due to the special and peculiar circumstances of the case.
Key Issues
1. Whether the impugned assessment order and consequential rectification order are liable to be quashed for gross violation of principles of natural justice, arbitrary, and perverse, particularly in light of the petitioner's failure to respond to the show cause notice due to personal and business circumstances? Petitioner's contention: The petitioner argued that the ex-parte order was passed without considering their circumstances, leading to a violation of natural justice. They contended that due to personal and business issues, they missed the opportunity to submit documents proving their claim of dealing with exempted goods. They sought an opportunity to present their case before the authority. Respondent's contention: The judgment does not record any specific arguments from the respondent. However, the respondent is the authority that passed the impugned orders.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT Dated: 08.06.2026 CORAM THE HONOURABLE MR JUSTICE D.BHARATHA CHAKRAVARTHY and W.M.P(MD)No.11206 of 2026 KSPS Natarajan and Co., Represented by its, partner Mr.M.Vairavel, 13/A/1, Pillaiyar Koil Street, Meenakshipuram West, Thoothukudi District - 628002. ... Petitioner Vs.
The State Tax Officer Commercial Tax Officer, Commercial Tax Department, Office of the Tuticorin 1 Assessment circle, No.282 A North Beach Road, Tuticorin – 628001. ...Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari calling for the records of the impugned orders passed by the Respondent in GSTIN No. 33AAAFK9908R1ZR along with Form GST DRC-07 in Reference No. ZD331225281582G Dated 17.12.2025 and consequential rectification order in Reference No. ZD330426180012U dated 21.04.2026 and quash the same as it is in gross violation of principles of natural justice, 1 https://www.mhc.tn.gov.in/judis judicial discipline, is arbitrary, perverse and violative of Articles 14 and 19 (1)(g) of the Constitution an
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