Tvl Sri Saravana And Co vs. The Commissioner Of Commercial Taxes

Facts

The petitioner, Tvl.Sri Saravana & Co., filed a writ petition challenging an assessment order dated 29.12.2025 passed by the State Tax Officer (second respondent) under Section 73 of the TNGST Act, 2017. The petitioner, a dealer in petroleum products, claimed these products are exempt from GST. A show cause notice was issued, but the petitioner did not appear before the authority or produce documents to support their claim of exemption. Consequently, the impugned assessment order was passed. The petitioner contended that despite the show cause notice being uploaded on the portal, they could not appear due to certain circumstances, but reiterated that all their products are petroleum products and thus outside the GST regime. The respondents argued that the petitioner received intimations and should have appeared with proof of exemption.

Held

The Court held that an opportunity should be granted to the petitioner to present their case, notwithstanding their failure to appear earlier. The Court acknowledged the petitioner's positive assertion that all their products are petroleum products, which are exempt from the GST regime. The Court reasoned that considering the merits of the case, one more opportunity would be appropriate. The impugned order dated 29.12.2025 was set aside and the matter was remanded back to the second respondent for fresh consideration. The petitioner was directed to file their reply and produce supporting documents within two weeks of receiving the order. The second respondent was then to consider the matter afresh and pass orders in accordance with the law. The Court emphasized that dealers should be vigilant in appearing before authorities and submitting replies promptly.

Key Issues

1. Whether the petitioner was denied adequate opportunity to present their case before the assessment order was passed, concerning the applicability of GST to petroleum products (Section 73 of the TNGST Act, 2017)? Petitioner's arguments: The petitioner asserted that all their products are petroleum products, which are exempt from the GST regime. They claimed that while the show cause notice was uploaded on the portal, they could not appear and explain their situation due to specific circumstances. They sought a fresh opportunity to present their case. Respondents' arguments: The respondents contended that the petitioner received due intimations regarding the show cause notice being uploaded on the portal and their mobile. It was incumbent upon the petitioner to appear before the authority and submit proof to establish that the goods in question were exempt from GST.