Tvl.Yk57T Marudhur Primary Agricultural Co-Operative Credit Society vs. Deputy State Tax Officer-Ii

Facts

The petitioner, Tvl. YK57T Marudhur Primary Agricultural 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, claimed that its activities are entirely exempt from GST. The impugned order was passed ex-parte because the petitioner failed to upload supporting documents for its exemption claim and missed the opportunity to reply to the show cause notice due to personal and business circumstances. The petitioner sought to quash the order and requested a de novo assessment.

Held

The Court allowed the writ petition and set aside the impugned order dated 06.11.2025. The matter was remanded back to the respondent for a fresh consideration. The Court reasoned that in cases where an ex-parte order is passed due to the petitioner missing an opportunity to respond, and given the petitioner's claim of being engaged in exempt agricultural business, 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. As a consequence of setting aside the assessment order, any attachment of the bank account made pursuant to it was also ordered to be raised. The Court directed the petitioner to appear before the respondent and submit their reply and supporting documents for a fresh consideration and order in accordance with law. The Court did not impose the usual condition of 25% deposit, considering the special and peculiar circumstances. No issue was expressly left undecided.

Key Issues

1. Whether the ex-parte assessment order passed under Section 73 of the TNGST Act, 2017, is sustainable when the petitioner claims to be engaged in an exempt agricultural business and missed the opportunity to reply to the show cause notice due to special circumstances? Petitioner's arguments: The petitioner contended that it is a co-operative credit society involved in agricultural business, which is exempt from GST. They admitted to missing the deadline to reply to the show cause notice and upload documents due to personal and business reasons, leading to an ex-parte order. They sought an opportunity to present their case and documents. Respondent's arguments: The judgment does not record any specific arguments made by the respondent. However, the respondent passed the impugned order, indicating a stance that the petitioner's non-compliance warranted such action.