Shiv Shankar Singh vs. The Deputy Commissioner (GST Appeal)

Facts

The petitioner, Shiv Shankar Singh, filed a writ petition challenging an assessment order dated 06.02.2025 passed by the Deputy State Tax Officer - II (second respondent) under Section 73 of the TNGST Act, 2017, and a consequential order dated 15.12.2025 by the Deputy Commissioner (GST Appeal) (first respondent) rejecting the petitioner's appeal on grounds of delay. The assessment order was passed ex parte because the petitioner did not avail the opportunities provided. The discrepancy noted was a turnover mismatch between GSTR1 and GSTR3B. The petitioner explained that the same issue had been previously accepted by the department and proceedings dropped. The reason for not attending the assessment proceedings was the sudden death of a staff member on 10.01.2025, leading to confusion and inability to prepare a detailed reply.

Held

The Court held that an opportunity should be granted to the assessee to present their submissions and produce supporting documents before the respondent assessing officer. The Court acknowledged the equitable grounds on which such opportunities are extended, subject to appropriate conditions. The Court found merit in the petitioner's explanation for not availing the opportunity during the assessment proceedings, particularly the disruption caused by the staff member's death. Consequently, the Court decided to set aside both the assessment order dated 06.02.2025 and the appellate order dated 15.12.2025. The matter was remanded back to the second respondent for fresh consideration. The Court also directed that any attachment of the bank account made pursuant to the impugned order shall stand raised. The ratio decidendi is that procedural fairness and an opportunity to be heard on merits are paramount, and genuine reasons for non-compliance, especially those arising from unforeseen circumstances like death, should be considered sympathetically by remanding the matter for fresh adjudication.

Key Issues

1. Whether the ex parte assessment order dated 06.02.2025, passed under Section 73 of the TNGST Act, 2017, is liable to be quashed on the grounds of the petitioner not being afforded a proper opportunity to present their case, considering the explanation provided for non-compliance. 2. Whether the appellate order dated 15.12.2025, rejecting the petitioner's appeal on grounds of delay, is sustainable in light of the circumstances explained by the petitioner for the delay. Petitioner's Arguments: The petitioner contended that the assessment order was passed ex parte without considering their explanation for the turnover mismatch, which had been previously accepted by the department. They also argued that the delay in filing the appeal was due to the unfortunate and sudden death of a staff member, which caused significant disruption and prevented timely preparation of a detailed reply and appeal. The petitioner sought an opportunity to present their case on merits. Revenue's Arguments: The revenue, represented by the Government of Tamil Nadu, did not record any specific arguments in the judgment regarding the merits of the turnover mismatch or the validity of the delay in filing the appeal. Their primary stance was likely in defense of the orders passed by the authorities.