Shaiek Dawood vs. The Deputy State Tax Officer -1 (St)

Facts

The petitioner, Shaiek Dawood, challenged an order dated 03.12.2025 passed by the Deputy State Tax Officer-1 (ST), Pudukottai, under Section 73 of the TNGST Act, 2017. The petitioner is engaged in selling vegetable seeds and organic manure, which he claims are entirely exempted from tax. The impugned order was passed ex-parte because the petitioner failed to upload documents to prove exemption and missed the opportunity to reply to the show cause notice due to personal and business circumstances. The petitioner sought to quash this order.

Held

The Court held that since the petitioner claims to deal exclusively in exempted goods (vegetable seeds and organic manure), and thus has no outward tax liability, it would be appropriate to grant him one more opportunity to present his case. The Court found the circumstances to be special and peculiar. Consequently, the impugned order dated 03.12.2025 was set aside, and the matter was remanded back to the respondent authority. The Court directed the petitioner to deposit 25% of the disputed tax amount within four weeks of receiving the order's web copy. Upon such deposit, the respondent authority is to consider the petitioner's reply and supporting documents afresh and pass orders in accordance with the law. Any bank account attachment made pursuant to the impugned order was also ordered to be raised.

Key Issues

1. Whether the impugned ex-parte assessment order passed under Section 73 of the TNGST Act, 2017, is liable to be quashed on the ground that the petitioner was not afforded a proper opportunity to present his case due to personal and business circumstances, especially when the petitioner claims to deal only in exempted goods? Petitioner's arguments: The petitioner contended that the assessment order was passed ex-parte due to his inability to respond to the show cause notice and upload supporting documents owing to personal and business circumstances. He further argued that his business involves only exempted goods, meaning there is no outward tax liability. Revenue's arguments: The judgment does not record any specific arguments made by the respondent revenue authority.