Tvl Cks Ventures vs. The Deputy State Tax Officer -1
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Before: and
This writ petition challenges the impugned order dated 22.01.2025 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 not participating in the assessment proceedings are summarised briefly and presented in a table below: Discrepancies found/Grounds on which the assessment is passed Explanation offered by the Assessee on merits Explanation for not availing the opportunity 2/6 https://www.mhc.tn.gov.in/judis Under declaration of tax payable as per returns based
on the reconciliation of GSTR 01 with GSTR 3B Difference between GSTR-1 and GSTR-3B is due to timing/reporting differences and clerical errors, not suppression of turnover. Reconciliation statements and books of accounts substantiate correctness of turnover and ITC claims. Excess claim of ITC availed w.r.t GSTR-2A ITC cannot be denied solely on GSTR-2A mismatch. Transactions were genuine and supported by invoices, payment proof and receipt of goods. Claim of ineligible ITC under Section 17(5) No ineligible ITC under Section 17(5) has been availed; credits relate to business use and are duly supported by goods. a) The assessee was suffering from serious ill health and had relied on a part-time accountant who failed to properly respond to notices. b) All notices were uploaded only on the GST portal without effective service, resulting in inability to attend hearing or submit documents.
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. Therefore, an opportunity is granted to the petitioner assessee on the condition of depositing 25% of the disputed tax amount. The entire tax has been recovered from the petitioner. 3/6 https://www.mhc.tn.gov.in/judis
In view thereof, this Writ Petition is allowed on the following terms: (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 with the respondent, without waiting for a certified copy of the order; (ii) Upon such deposit, the impugned order dated 22.01.2025 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. 24.04.2026 sji 4/6 https://www.mhc.tn.gov.in/judis NCC: Yes/No To The Deputy State Tax Officer-1, Kuzhithurai-1 Assessment Circle, Commercial Taxes Buildings, Kuzhithurai. 5/6 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J. sji
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.