Tvl. Murali Store vs. The State Tax Officer

Facts

The petitioner, Tvl. Murali Store, represented by its Proprietor Vasanthi Manivel, filed a writ petition challenging an assessment order dated 29.12.2025, passed by the respondent, the State Tax Officer, Gandhi Market Assessment Circle, Trichy. The assessment order for the year 2021-22 was made ex-parte. The petitioner contended that the assessment was based on discrepancies related to exempted transactions of agri-medicine products, which are covered under notification No.12/2017 Central Tax (Rate). The respondent had sought details of these exempted transactions and levied interest under Section 50(1) of the Act for belated payment of tax. The petitioner also stated that they did not receive the show cause notice as all communications were served on the web portal, which they failed to notice.

Held

The Court held that an opportunity should be granted to the assessee to present their submissions and produce supporting documents before the respondent assessing officer. The Court noted the nature of the discrepancies, the explanation offered by the assessee on merits, and the reason provided for not availing the opportunity. The Court decided to set aside the impugned assessment order dated 29.12.2025 and remand the matter back to the respondent. The assessee was directed to appear before the respondent without fail, submit their reply and supporting documents, and the respondent was to consider the matter afresh and pass orders in accordance with law. The Court also directed that any attachment of the bank account made pursuant to the impugned order shall stand raised. The usual condition of depositing 25% of the disputed amount was not imposed, considering the petitioner's claim of dealing with exempt products. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the assessment order passed ex-parte under Section 73 of the TNGST Act, 2017, is liable to be quashed, considering the petitioner's claim that the transactions were exempted and they did not receive the show cause notice served on the web portal? Petitioner's arguments: The petitioner argued that the assessment order was illegal as it was passed ex-parte without proper notice. They contended that the transactions in question, relating to agri-medicine products, were exempted from GST as per notification No.12/2017 Central Tax (Rate), entry 54, Chapter 9986. The levy of interest under Section 50(1) was therefore unjustified. They further submitted that they were unaware of the show cause notice because it was served on the web portal, which they did not notice. Respondent's arguments: The respondent, represented by the Additional Government Pleader, did not present any arguments on merits in the provided text. The judgment states that the assessment was made ex-parte because the petitioner did not utilize the opportunities provided.