Indian Traders vs. The Commercial Tax Officer
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Before: and
This writ petition challenges the impugned order dated 15.09.2025, which is an assessment order passed under Section 74 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 orders, 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: 3 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 i)Non submission of Records for Verification of ITC
claimed GSTR 3B As far as the alleged discrepancy, the petitioner submits that due to the illness of chief auditor, the records were not produced but the petitioner do maintain proper bills and other records ii) ITC availed on inward supply from Bill Traders / Non- Existing
Tax payer / RC cancelled
Tax payer The purchase was covered by proper tax invoice with collection of GST tax as provided under section 31 of the GST Act and Rule 36 of the GST Rules. Hence the question the payment of the tax does not arise Penalty
under section 74 and interest
under section 50 of the GST Act in the absence of any fraud, wilful
suppression
and misstatement of facts, the question of levy of interest under section 50 and penalty under section 74 of the GST act does not arise to the facts of this case The Part time accountant failed to notice the fact of issuing of the proceedings the respondent had only chosen to upload all the communication, summons, notices, and orders only on the web portal. Because of the above reasons, the petitioner was not able to access the Web portal which resulted in the issuance of Ex Parte impugned order
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 4 https://www.mhc.tn.gov.in/judis 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.
In view of this, the writ petition is allowed on the following terms:- i. Since 4% towards demand of IGST, 31% towards CGST and 41% SGST amount has already been recovered, the impugned order dated 15.09.2025 shall stand set aside and the matter shall stand remanded back to the file of the respondent. ii. The assessee shall appear before the respondent within four weeks of receiving the web copy of the order 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. 5 https://www.mhc.tn.gov.in/judis iii. Since the impugned order of assessment is set aside, any attachment of the bank account made pursuant to the impugned order shall stand raised. iv. No costs. Consequently the connected miscellaneous petition shall stand closed. 27.04.2026 (1/2) Neutral Citation: No rgm 6 https://www.mhc.tn.gov.in/judis To 1. The Commercial Tax Officer, TND019, Admn. State Integrated Commercial Taxes Building, Madurai Main Road, Virudhunagar 626001
The Assistant Commissioner, Intelligence, Virudhunagar, Integrated Commercial Taxes Building, Madurai Main Road, Virudhunagar 626001
The Joint Commissioner (ST), Intelligence, Virudhunagar, Integrated Commercial Taxes Building, Madurai Main Road, Virudhunagar 626001
The Branch Manager, City Union Bank Limited, Door No.133, Madurai Road, Virudhunagar – 626 001. 7 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY
, J.
rgm and W.M.P(MD)No.4116 of 2026 27.04.2026 (1/2) 8 https://www.mhc.tn.gov.in/judis 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.