Tvl.Super Rubber Products vs. State Tax Officer
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Before: and Dr. Thangaraj Salai,
This writ petition challenges the impugned order dated 17.02.2025 which is an assessment order passed under Section 73 of the TNGST Act 2017. 2. I have heard the learned counsel for the petitioner and the learned Additional Government Pleader representing the revenue.
By the impugned order, 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 summarized briefly and presented in a table below: 2 https://www.mhc.tn.gov.in/judis Discrepancies found/Grounds on which the order is passed Explanation offered by the Assessee on merits Explanation for not availing the opportunity Ineligible ITC: Assessee has claimed ineligible ITC on Cement, Iron & Steel,
Tiles, Electrical goods, Plywoods, Paint. The Assess submit that during the course of their business activities, they had effected inward supply of goods, which is used only in the course of our business activities, which is not blocked/ ineligible. But, the Respondent has presumed that those goods are not meant for business purpose and thereby came to a wrong conclusion that the Input Tax Credit availed on such inward supply is ineligible and thereby arrived the alleged liability, which is actually not correct. During the course of their business activities, they had effected inward supply of goods which is meant for their business and hence they are eligible to claim Input Tax Credit on the same. No physical notice is served and the impugned notice/order is uploaded only in the GSTN Common Portal and thus due to no knowledge about the issuance of notice by the Proper Officer, not able to file reply. 2.Interest and Penalty:
The Proper Officer has levied consequential interest
and penalty. Since the tax demanded itself is not sustainable as stated above, the consequential interest and penalty levied is also liable to be quashed. No physical notice is served and the impugned notice/order is uploaded only in the GSTN Common Portal and thus due to no knowledge about the issuance of notice by the Proper Officer, not able to file reply. 3 https://www.mhc.tn.gov.in/judis
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 has already paid 12.5% under CGST and 22% under SGST of the disputed tax. Therefore, an opportunity is granted to the petitioner assessee on the condition of depositing remaining 12.5% under CGST and 3% under SGST of the disputed tax amount.
In view of this, the writ petition is allowed on the following terms:- i. Within four weeks of receiving the web copy of the order, the petitioner shall deposit 12.5% under SGST & 3% under CGST of the disputed tax amount with the respondent, without waiting for a certified copy of the order. 4 https://www.mhc.tn.gov.in/judis ii. Upon such deposit, the impugned order dated 17.02.2025 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 petition shall stand closed. 30.04.2026 Neutral Citation: No rgm 5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY
, J.
rgm To The State Tax Officer, Melur Assessment Circle, Commercial Tax Buildings, Dr. Thangaraj Salai, Madurai 625 020. and W.M.P(MD)No.10094 of 2026 30.04.2026 6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.