Tvl Glory Graphics vs. Assistant Commissioner (St)

Upon hearing the learned counsel for the petitioner and perusing the material records of the case, the petitioner’s case is that when the Show Cause Notice was issued, no proper averments or allegations were contained in the Show Cause Notice so as to invoke Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017. The further case of the petitioner is that the impugned order is a non- speaking and cryptic order, as the petitioner had explained that the noted difference in the amount was only due to changes in inventory and the wrongful inclusion of GST expenses in the turnover. Other direct purchases, such as rent, telephone charges, and accounting charges, were also included. The authority did not consider these and rejected the explanation without giving detailed reasons.

Per contra, the learned Additional Government Pleader appearing for the respondent submitted that when an allegation is made relating to suppression of turnover, there is justification in invoking Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017. After considering the objections raised by the petitioner, the authority has passed the impugned order. There is also an appeal remedy available against the order, which was not availed of by the petitioner. 3 https://www.mhc.tn.gov.in/judis

I have considered the rival submissions made on either side and perused the material records of the case.

Considering the peculiar nature of the case, when the Show Cause Notice was issued noting the discrepancy between the turnover reported and the turnover noted from the petitioner’s records, the petitioner took a specific stand in the reply. However, the reply consists only of a single, general sentence.

The learned counsel for the petitioner stated that during the personal hearing, the explanation was demonstrated.

Be that as it may, I am of the view that considering the nature of the allegations and the reply given, one more opportunity can be granted to the petitioner to address the ground of whether Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017 can be invoked or not.

In view thereof, the writ petition is ordered on the following terms:- i. The impugned orders dated 06.10.2025 and 10.04.2026 shall stand set aside and the matter shall remanded back to the file of the respondent. ii. The petitioner is directed to file any additional reply and submit any additional documents in support of their claim. It will be open to the petitioner to raise all grounds, including the ground that the matter does not fall under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017 and it is for the respondent to consider the matter and pass orders afresh in accordance with law. iii. No costs. Consequently, connected miscellaneous petitions are closed. 30.04.2026 Neutral Citation: No rgm 5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY