Tvl Jaya Roadways vs. The Commissioner Of Commercial Taxes

Facts

The petitioner, Tvl. Jaya Roadways, filed a writ petition challenging an assessment order dated 11.11.2025 passed by the Assistant Commissioner (ST), Aruppukottai Assessment Circle, under Section 73 of the TNGST Act. The petitioner contended that while a notice for personal hearing was served for 03.11.2025, they uploaded their reply to the show cause notice on the web portal on 10.11.2025, which was not considered before the order was passed on 11.11.2025. The revenue argued that the petitioner failed to appear for the hearing and provide proper tax invoices or tickets as required by Rule 54(4) of the CGST/TNGST Rules, 2017, submitting only profit and loss statements without supporting documents. The petitioner countered that they operated stage carriage buses and goods vehicles for agricultural goods, which are exempt, and possessed most required documents, seeking an opportunity to produce them.

Held

The Court held that while the petitioner did not properly avail the initial opportunity for personal hearing on 03.11.2025, they did upload a reply on 10.11.2025, one day before the impugned assessment order was passed on 11.11.2025. This indicated sufficient vigilance in submitting a reply prior to the order. Considering the overall facts, including the petitioner's plea regarding exempted turnover and the primary reason for the liability being non-production of supporting documents, the Court was of the view that an opportunity ought to be granted. The impugned order of assessment dated 11.11.2025 was set aside and the matter was remanded to the second respondent for fresh consideration. The petitioner was directed to appear within two weeks, file an additional reply with supporting documents, and a personal hearing would be afforded. The second respondent was to consider the matter afresh and pass appropriate orders. The issue of whether the petitioner's business activities were indeed exempt was not expressly decided but was to be considered in the fresh assessment.

Key Issues

1. Whether the assessment order passed by the second respondent is liable to be quashed on the ground that the petitioner's reply uploaded on 10.11.2025 was not considered before the order dated 11.11.2025 was passed, thereby violating principles of natural justice, particularly in light of Section 73 of the TNGST Act? Petitioner's contention: The petitioner argued that their reply was uploaded prior to the passing of the assessment order, and its non-consideration rendered the order invalid. They also highlighted that a portion of their turnover related to exempt transportation of agricultural goods and stage carriage operations, and the entire liability was fastened due to non-production of documents. Revenue's contention: The revenue contended that the petitioner failed to appear for the personal hearing on 03.11.2025 and did not produce required tax invoices or tickets under Rule 54(4) of the CGST/TNGST Rules, 2017, submitting only profit and loss statements without supporting documents like passenger tickets, trip sheets, or bank reconciliation.