M/S.Amk Athencottasan Muthamizh Kazhagam Man Power Services vs. The State Tax Officer -6 (Ins)
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Before: and
This Writ Petition challenges the impugned order dated 23.08.2024, 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 order, the assessment was made rejecting the representation dated 04.05.2024. 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 i) Short payment of IGST on account of the difference between the tax declared in form GSTR 1 and tax paid through form GSTR 3B return for the tax period of March 2023 on the allegation of wrong claim of exemption
on waste management of service rendered to local authority. ii) Penalty under Section 74 and interest under Section 50 of the GST Act. As far as the discrepancy pointed out by the respondent, the petitioner submits that form GSTR 1 is only a statement meant for reporting invoice wise outward supply details. It is not a return for payment of tax and the respondent had failed to consider that the difference is purely a reconciliation issue dropping from reporting discrepancies and does not represent such payment of tax or evasion of tax. For invocation of Section 74 of the GST Act, fraud, wilful misstatement or suppression of facts with an intent to evade tax, should be established. In this regard, reliance is placed on the decision of the Hon'ble Supreme Court in the case of GR Infra Hon'ble Supreme Court stayed the further proceedings arising out of a show cause notice issued under Section 74 of the Act. The Part time accountant failed to notice the fact of issuing of the order. 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 resulted in the issuance of Ex Partee 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 be granted to the 3/6 https://www.mhc.tn.gov.in/judis 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. Within four weeks of receiving the 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. ii. Upon such deposit, the impugned order dated 23.08.2024 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. 4/6 https://www.mhc.tn.gov.in/judis 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, connected Miscellaneous Petition is closed. 27.04.2026 (1/3) NCC : Yes / No ps To The State Tax Officer - 6 (Ins), Commercial Tax Building, Tirunelveli. 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY
, J.
ps
2026 (1/3) 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.