M/S Selvi Communication vs. The Assistant Commissioner (St)
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Before: and
This writ petition challenges the impugned order dated 08.02.2025 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 for the respondent.
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 petitioner'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 Under Declaration of output
tax (Reconciliation of GSTR-01 with GSTR-09) The authority has mechanically compared GSTR-01 gross figures against the GSTR-09 (5N +previous year 10-11) without accounting for credit notes, amendments, exempted supplies or nil rated supplies that legitimately reduce the GSTR-09 figure. Excess claim of ITC The taxpayer is entitled to claim ITC on genuine inward supplies supported by valid tax invoices, payment of consideration, and tax deposited by the supplier. If suppliers have deposited tax, ITC cannot be denied merely on reconciliation ground. There is no specific supplier wise denial in the order Invalid
ITC under Section 16(4) The petitioner has filed return till February 2021 within cut off date. The time limits under Section 16(4) cannot override the fundamental rights to claim ITC on genuine transactions Interest and Late Fee calculation The demand
partially acknowledges the covid waiver but the actual interest computation must be verified to ensure full benefit of all COVID waivers. Petitioner relied on a GST practitioner who failed to inform about notices and hearing. Due to such bonafide lapse, no reply or appearance was made, resulting in ex parte order. 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.
Usually, while remanding the matter, this Court imposes the condition to deposit 25% of the disputed tax amount. But in respect of the discrepancy, since it is pleaded that the same is covered by the amendment to Section 16 of the TNGST Act, 2017, in respect of the said amount, the condition is not imposed. With reference to the other discrepancies, let the petitioner deposit 25% of the disputed amount.
In view thereof, this Writ Petition is allowed on the following terms: 4/6 https://www.mhc.tn.gov.in/judis (i) Within four weeks from the date of receipt of a web copy of the order, the petitioner shall deposit 25% of the disputed tax amount in respect of the other items, except the one which is pleaded to be covered under Section 16(5) of the TNGST Act, 2017, without waiting for a certified copy of the order; (ii) Upon such deposit, the impugned order dated 08.02.2025 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; No costs. Consequently the connected miscellaneous petition is closed.
2026 sji NCC: Yes/No 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J. sji To The Assistant Commissioner (ST), Pudukkottai-1 Assessment Circle, Pudukkottai & District. Tamil Nadu
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.