Tvl. Kumaran Sea Foods Private Limited vs. The Assistant Commissioner (St) - 2

Facts

The petitioner, Tvl. Kumaran Sea Foods Private Limited, engaged in trading seafood like crabs, trout, and pacific salmon, filed a writ petition challenging an assessment order dated 20.11.2025, issued by the Assistant Commissioner (ST)-2, Tuticorin. The order was passed under Section 73 of the TNGST Act, 2017, for the tax period 2021-2022. The petitioner's contention was that the goods traded are entirely exempted from tax. However, the impugned order was passed due to the petitioner's failure to upload documents proving exemption. The petitioner attributed this failure to personal and business circumstances, leading to a missed opportunity to respond to the show cause notice.

Held

The Court allowed the writ petition on equitable grounds, recognizing the petitioner's explanation for not availing the opportunity to respond to the show cause notice and upload supporting documents. The Court held that an opportunity should be granted to the assessee to present their submissions and produce relevant documents before the respondent assessing officer. Consequently, the impugned assessment order dated 20.11.2025 was set aside. The matter was remanded back to the respondent for fresh consideration. The assessee was directed to appear before the respondent, submit their reply and documents, and the respondent was to pass orders in accordance with the law. Any attachment of the bank account made pursuant to the impugned order was also ordered to be raised. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the impugned assessment order passed under Section 73 of the TNGST Act, 2017, is liable to be set aside on the grounds of the petitioner failing to upload exemption proof due to personal and business circumstances, thereby missing the opportunity to reply to the show cause notice? Petitioner's Arguments: The petitioner argued that the goods they trade are entirely exempted from tax. They failed to upload the necessary documentary proof for this exemption and to respond to the show cause notice due to personal and business exigencies. They contended that an opportunity should be granted to present their submissions and supporting documents. Revenue's Arguments: The judgment records no specific arguments from the revenue's side regarding the petitioner's failure to upload documents or the merits of the exemption claim. The Additional Government Pleader represented the revenue.