Tvl. Asr Traders vs. Deputy State Tax Officer 2 - Madras High Court, 20 April 2026

Before: and

This writ petition challenges the impugned order dated 10.09.2025 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. 3.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: 2 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

Excess ITC availed on reverse charge The petitioner has claimed only the eligible Input Tax credit on inward supply of goods, which is used only in the taxable outward supply. 2.ITC to be reversed on non- business transaction & exempted goods The petitioner has not claimed any ITC on inward supply which is used for exempted outward supply of goods. The show cause notice and impugned order have uploaded in the GST Portal only but the reply not filed due to the accountant never informed that the above. Hence, the ex-parte order passed. 3.Excess claim of ITC in GSTR-3B w.r.t GST-9 There is a human error crepted while uploading the ITC break-up in table 6I of GSTR-9, due to which there is no revenue loss to the department and moreover the claim of ITC is supported

by valid documents and he same can be easily verified from the GSTN common portal. Hence, the question of utilizing common input tax credit does not arise at all by the respondent itself, but the respondent has utterly failed to to so. 4.GSTR-1 late fee The late fee levied on the belated filing of GSTR-1 returns but during the time, the Covid period, the Government has extended the period for filing of returns as per notification. But the respondent has not considered and confirmed the proposal. - do- 3 https://www.mhc.tn.gov.in/judis

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. 5.In view thereof, the Writ Petition is allowed on the following terms: (i)Within a period of four weeks from the date of receipt of 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 10.09.2025 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 4 https://www.mhc.tn.gov.in/judis attachment of the bank account made pursuant to the impugned order shall raised. (v)No costs. Consequently, connected miscellaneous petition is closed. 20.04.2026 NCC:Yes/No Ns To The Deputy State Tax Officer-2, Virudhunagar -II Assessment Circle, Commercial Tax Office Building, Virudhunagar District 626 001. 5 https://www.mhc.tn.gov.in/judis D.BHARATHA CHAKRAVARTHY, J. Ns and W.M.P(MD)No.8781 of 2026 20.04.2026 6 https://www.mhc.tn.gov.in/judis