Tvl. Hotel Shree Deiva vs. The Deputy State Tax Officer - 2

Facts

The petitioner, Tvl. Hotel Shree Deiva, filed a writ petition challenging an assessment order dated 24.12.2025, passed by the Deputy State Tax Officer – 2, Theni. The assessment order was made ex parte because the petitioner allegedly did not utilize the opportunities provided. The respondent alleged that the petitioner failed to explain the reasons for conducting business as an unregistered person despite being liable to be registered under the act. The petitioner contended that all notices were uploaded only on the online portal and were not communicated through any other mode, leading to their lack of awareness. The petitioner's auditor, who dealt with GST portals, also did not inform them. The petitioner claimed difficulty in accessing and replying to notices due to technical issues and the respondent's failure to send notices through any other mode.

Held

The Court held that an opportunity should be granted to the assessee to present their submissions and produce relevant supporting documents before the assessing officer. The Court noted that it has been extending such opportunities on equitable grounds, albeit under appropriate conditions. Consequently, the Court allowed the writ petition on the condition that the petitioner deposits 25% of the disputed tax amount within four weeks of receiving the web copy of the order. Upon such deposit, the impugned order dated 24.12.2025 would be set aside, and the matter would be remanded back to the respondent for fresh consideration. The assessee is required to appear before the respondent, submit their reply and documents, and the respondent is to consider the matter afresh and pass orders in accordance with law. Any bank account attachment made pursuant to the impugned order would also stand raised. The issue of whether the notices were properly served or if the ex parte assessment was justified was not definitively decided but was rendered moot by the remand.

Key Issues

1. Whether the ex parte assessment order passed by the respondent is valid, considering the petitioner's claim of not receiving proper communication of notices, thereby violating principles of natural justice under Section 73 of the TNGST Act, 2017? Petitioner's Arguments: The petitioner argued that the respondent passed the assessment order ex parte without proper communication of notices. They contended that all notices were uploaded only on the online portal, and they were not informed through any other mode. The petitioner's auditor, who handled GST portals, also failed to inform them. Technical issues further hampered their ability to access and reply to notices. Therefore, the ex parte order is unsustainable. Revenue's Arguments: The revenue, represented by the Government Advocate, did not explicitly record any arguments in the judgment regarding the petitioner's claim of non-receipt of notices or the validity of the ex parte assessment. The judgment states that the assessment was made ex parte because the petitioner did not utilize the opportunities provided.