Tvl Jk Traders vs. The Deputy State Tax Officer 2
Original PDF →Facts
The petitioner challenged an ex-parte assessment order passed under Section 73 of the GST Act, 2017. The petitioner claimed they did not receive proper notification and were unaware of the proceedings.
Held
The Court granted the petitioner an opportunity to present their case by setting aside the impugned order. This was conditional on the petitioner depositing 25% of the disputed tax amount.
Key Issues
Whether the ex-parte assessment order was passed in violation of natural justice due to lack of proper notification to the assessee.
Sections Cited
Section 73
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Before: and
This writ petition challenges the impugned order dated 22.12.2025 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: Discrepancies found/grounds
on which the order is passed Explanation offered by the Assessee on merits Explanation for not availing
the opportunity 2/6 https://www.mhc.tn.gov.in/judis
ITC to be reversed on exempted supplies The petitioner has claimed ITC on the inward supplies of taxable goods only but he has not claimed any ITC on the exempted supply of goods but the respondent's contention is incorrect and against the provisions of the Act. The respondent has passed the impugned order as ex-parte, now I am ready to file reply along with connected records in accordance with law. The impugned order uploaded in the GST portal only due to without knowledge of the petitioner. The accountant
never informed
that the impugned order already passed/uploaded in the same. 2.Claim of ineligible ITC u/s. 17(5) The entire claim of ITC genuine as per Section 16 of the Act. If once verification of entire documents then and there is no ineligible claim of ITC as per the provisions of the Act. The impugned order uploaded in the GST portal due to without knowledge
of the petitioner. 3.ITC claimed from tax non-prayers The suppliers filed GSTR-3B with nil turnover declared and did not pay
tax corresponding to invoice. The petitioner ready to file reply along with supporting documents for claim of ITC is eligible as per the provisions of the Act. The impugned order uploaded in the GST portal due to without knowledge
of the petitioner. 3/6 https://www.mhc.tn.gov.in/judis
Late fee levied for belated filing of GSTR-1 I am ready to file supporting documents & records before the respondent for belated filing of GSTR-1 return The impugned order uploaded in the GST Portal due to without knowledge
of the petitioner. 4.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 on the condition of depositing 25% of the disputed tax amount. 5.In view thereof, the Writ Petition is allowed on the following terms: (i)Within a period of four weeks from the date of receipt of web copy of the order, the petitioner shall deposit 25% of the disputed tax amount with the respondent, without waiting for a certified copy of the order. 4/6 https://www.mhc.tn.gov.in/judis (ii)Upon such deposit, the impugned order dated 22.12.2025 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 raised. (v)No costs. Consequently, connected miscellaneous petition is closed. 29.04.2026 NCS : Yes/No Ns To The Deputy State Tax Officer-2, Tuticorin-2 Assessment Circle, Tuticorin. 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY.,J. Ns ORDER MADE IN 29.04.2026 6/6 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.