Tvl.Jothi Modern Rice Mill vs. The Proper Officer
Original PDF →Facts
The petitioner's assessment order was passed ex parte due to non-submission of documents and lack of opportunity. The petitioner claimed exemption for unbranded rice, which is tax-exempt.
Held
The Court found merit in the petitioner's explanation for not availing the opportunity and the claim of exemption. An opportunity was granted to the assessee to present their case and supporting documents.
Key Issues
Whether the ex parte assessment order was valid given the petitioner's explanation for non-compliance and claim of exemption for unbranded rice.
Sections Cited
Section 73
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Before: and
This Writ Petition challenges the impugned order dated 16.12.2025, 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 representing the revenue.
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 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 Non-submission
of supporting documents for the claim of exemption. The petitioner is dealing with unbranded rice. The supply of unbranded rice is exempted from the tax under the GST Act as per serial No.70 and HSN Code 1006 of the Notification No.02/2017 Central Tax (Rate) dated 28.06.2017. Hence, the levy of tax is incorrect and invalid. The petitioner is ready to file reply along with connected records before the respondent for claim of exemption. The Accountant has not informed about the impugned order and the impugned order uploaded in the GST portal due to without knowledge of the petitioner.
Considering the nature of the claim of exemption 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; therefore, an opportunity is granted to the petitioner assessee.
It is stated that the petitioner is only dealing with unbranded rice which is exempted from tax, the usual condition to deposit 25% is not imposed in this case. 3/6 https://www.mhc.tn.gov.in/judis
In view of this, the writ petition is allowed on the following terms:- i. The impugned order dated 16.12.2025 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 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. 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. The authority shall act upon the web copy of this order without waiting for the certified copy of the order. No costs. Consequently, connected Miscellaneous Petition is closed. 27.04.2026 NCC : Yes / No ps 4/6 https://www.mhc.tn.gov.in/judis To The Proper Officer, Office of the Assistant Commissioner (ST), Tenkasi Assessment Circle, Tenkasi. 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY
, J.
ps
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.