Tvl.Mm343 Chinthalavadi Primary Agri Co-Operative Credit Society vs. Deputy State Tax Officer Ii

Facts

The petitioner, Tvl. MM343 Chinthalavadi Primary Agri Co-operative Credit Society, filed a writ petition challenging an assessment order dated 06.11.2025, passed by the respondent, the Deputy State Tax Officer-II. The petitioner, engaged in agricultural business and operating as a co-operative credit society, claimed its goods were entirely exempt from tax. The impugned order was passed ex-parte on the grounds that the petitioner failed to upload documents supporting their exemption claim and missed the opportunity to reply to the show cause notice due to personal and business circumstances. The tax period under challenge is 2021-2022. The amount in dispute is not explicitly stated.

Held

The Court allowed the writ petition, setting aside the impugned order dated 06.11.2025. The matter was remanded back to the respondent authority for fresh consideration. The Court reasoned that in cases where an ex-parte order is passed due to the assessee's failure to respond, and given the petitioner's claim of engaging solely in agricultural business which is exempt from tax, it is appropriate to grant an opportunity to present their case. The Court noted that the petitioner was within the time limit to file an appeal. Consequently, the petitioner was directed to appear before the respondent, submit their reply and supporting documents, and the respondent was directed to consider the matter afresh and 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 impose the usual condition of 25% deposit, considering the special and peculiar circumstances.

Key Issues

1. Whether the impugned ex-parte assessment order dated 06.11.2025, passed under Section 73 of the TNGST Act, 2017, is liable to be quashed on the grounds of the petitioner failing to appear and submit documents due to personal and business circumstances. Petitioner's arguments: The petitioner contended that they are engaged in agricultural business, which is exempt from tax. They missed the opportunity to reply to the show cause notice and upload supporting documents due to personal and business circumstances, leading to an ex-parte order. They sought an opportunity to present their case and documents before the authority. Respondent's arguments: The judgment does not record any specific arguments made by the respondent. However, the context implies the respondent relied on the ex-parte assessment order passed due to the petitioner's failure to comply with the notice.