Tvl.Amutha Petrol Bunk vs. The Appellate Deputy Commissioner (St)

I have heard the learned counsel for the petitioner and the learned Additional Government Pleader representing the revenue.

By the impugned orders, the assessment was made ex 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 Differential RCM liability determined based on mismatch between GSTR-2A and GSTR-3B. RCM applicability depends on notified categories and not merely on URP status of suppliers. Transport services attract RCM only when conditions under GTA provisions are satisfied. No verification conducted to establish whether supplies actually fall under RCM notifications. Though reply filed, the order has been passed for want of sufficient

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. The petitioner had already paid 10% of the disputed tax at the time of filing appeal. Therefore, an opportunity is granted to the petitioner assessee on the condition of depositing 15% of the disputed tax amount.

In view of this, the writ petition is allowed on the following terms:- 4 https://www.mhc.tn.gov.in/judis i. Within four weeks of receiving the web copy of the order, the petitioner shall deposit 15% of the disputed tax amount with the respondent, without waiting for a certified copy of the order. ii. Upon such deposit, the impugned orders dated 28.02.2025 and 13.01.2026 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 stand raised. v. No costs. Consequently the connected miscellaneous petitions shall stand closed. 30.04.2026 Neutral Citation: No rgm 5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY

The State Tax Officer, Mannargudi Assessment Circle, Commercial Taxes Buildings, Mannargudi – 614 001. and W.M.P(MD)Nos.10230 and 10232 of 2026 30.04.2026 6 https://www.mhc.tn.gov.in/judis