Tvl. Hotel Haja Palace vs. Deputy State Tax Officer - Madras High Court, 29 April 2026

Before: and

This writ petition challenges the impugned order passed by the respondent

in Form

GST

DRC-07,

GSTIN: 33AANPH9708F1ZN/2021-22, dated 13.12.2025, which is an assessment order passed under Section 73 of the GST Act 2017. 2.I have heard the learned counsel for the petitioner and the learned Additional Government Pleader representing the revenue. 3.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 summarised briefly and presented in a table below: 2/6 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 Disallowance of claim of exemption on the lodging services provided by the assessee for non-furnishing of supporting documents. The assessee submit that they are providing lodging services and the declared tariff of a unit of accommodation in their lodge is below one thousand rupees per day and hence the same is exempted from GST as per entry 14 of Notification No.12/2017, Central Tax – Rate, dated 28.06.2017 (HSN:9963)

and accordingly they reported and claimed exemption on the turnover of Rs. 21,49,160/-

through GSTR-1/GSTR-3B monthly returns. Thus, if the respondent has served the physical notice or atleast granted an effective opportunity of personal hearing, the assessee may appear and represent their case in an effective manner with connected material records, but not doing so, the respondent is said to be communicated the order only through GSTN common portal, which is not came into knowledge of the assessee in time and hence unable to file reply. 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. 3/6 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. Therefore, an opportunity is granted to the petitioner assessee. 5.In view thereof, the Writ Petition is allowed on the following terms: (i)Since it is claimed that the lodging service is by collecting below Rs.1000/- as such it is exempted, the impugned order dated 11.112025 shall stand set aside, and the matter shall stand remanded back to the file of the respondent. (ii)Within a period of four weeks from the date of receipt of web copy of the order, the petitioner, 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 4/6 https://www.mhc.tn.gov.in/judis and pass orders in accordance with law. (iii)Since the impugned order of assessment is set aside, any attachment of the bank account made pursuant to the impugned order shall raised. (iv)No costs. Consequently, connected miscellaneous petition is closed.

NCC :Yes / No 29.04.2026 Ns To The Deputy State Tax Officer, Ramanathapuram Assessment Circle, Commercial Tax Buildings, Ramanathapuram District. 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J.

Ns and W.M.P.(MD)No.9957 of 2026 29.04.2026 6/6 https://www.mhc.tn.gov.in/judis