Trichy Construction Company vs. The State Tax Officer Inspection Ii
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The petitioner, Trichy Construction Company, is challenging an ex-parte demand order dated 30.12.2023 passed by the first respondent (State Tax Officer) for the assessment year 2017-18, and a consequential rejection order dated 10.03.2025 by the second respondent (Appellate Deputy Commissioner) which dismissed the petitioner's appeal. The petitioner attributes its inability to attend the personal hearing and subsequent delay in filing the appeal to a lack of GST knowledge, reliance on a part-time accountant, and the ill-health of its proprietor. The appeal was rejected due to a delay of 99 days. The petitioner seeks to quash both orders and requests a fresh order after a personal hearing.
Held
The Court allowed the writ petition. It held that the petitioner had demonstrated a reasonable cause for the 99-day delay in filing the appeal before the second respondent, attributing it to the proprietor's ill-health. Consequently, the Court condoned the delay. The order of the appellate authority (second respondent) was set aside. The Court directed the second respondent to take up the petitioner's appeal and dispose of it on its merits and in accordance with the law, after providing the petitioner with an opportunity of a personal hearing. The Court found the petitioner's grievance regarding the delay to be valid and the reasons provided to be sufficient for condonation. No order as to costs was made.
Key Issues
1. Whether the ex-parte assessment order dated 30.12.2023 passed by the first respondent is liable to be quashed as cryptic, non-speaking, illegal, arbitrary, and without jurisdiction, contrary to Section 74 of the TNGST Act, 2017? 2. Whether the rejection order dated 10.03.2025 by the second respondent, dismissing the petitioner's appeal due to a 99-day delay, is sustainable, considering the petitioner's plea of reasonable cause due to the proprietor's ill-health? Petitioner's arguments: The petitioner contended that the assessment order was passed ex-parte without affording a proper opportunity of hearing, making it cryptic and non-speaking. The delay in filing the appeal was solely due to the proprietor's ill-health, constituting a reasonable cause. They relied on Section 75(4) of the TNGST Act, 2017, for the right to a personal hearing. Revenue's arguments: The learned Government Advocate for the respondents fairly submitted that if the Court finds sufficient and reasonable cause for the delay, appropriate orders may be passed.
Sections Cited
Section 74, Section 75(4)
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Before: and
This writ petition has been filed challenging the impugned order of demand passed by the first respondent dated 30.12.2023 and the order of the second respondent dated 10.03.2025, rejecting the appeal filed by the petitioner against the order of demand.
With the consent of both sides, this Writ Petition is taken up for final disposal at the admission stage itself.
The petitioner claims to be a Civil Contractor executing work contract for PWD Department and due to lack of GST knowledge and portal ____________ https://www.mhc.tn.gov.in/judis access, the petitioner had fully relied on a part-time accountant, who also failed to inform the petitioner about the assessment proceedings. Therefore, the petitioner was unable to attend the personal hearing, leading to the issuance of an ex-parte assessment order dated 30.12.2023. When the second respondent initiated recovery proceedings, the petitioner became aware of the assessment proceedings. The petitioner immediately filed an appeal before the second respondent, which was rejected due to limitation.
The petitioner's main grievance is that, due to ill-health of the Proprietor of the petitioner's concern, the petitioner was compelled to file the appeal with a delay of 99 days. The appeal was rejected on account of the said delay. Aggrieved by this, the petitioner has filed the present writ petition.
Mr.J.K.Jayaselan, learned Government Advocate appearing for the respondents would fairly submit that if the Court finds sufficient and reasonable cause for the delay, appropriate orders may be passed. ____________ https://www.mhc.tn.gov.in/judis
Considering the arguments made by the learned counsel for the petitioner and the learned Government Advocate for the respondents, as well as the fact that the delay has occurred only due to ill-health of the Proprietor of the petitioner's concern, this Court is of the view that the petitioner has demonstrated reasonable cause for the delay. Therefore, the Court is inclined to condone the delay of 99 days in filing the appeal.
Accordingly, the writ petition is allowed. The delay of 99 days in filing the appeal before the second respondent is condoned and the order of the appellate authority/second respondent is hereby set aside. There shall be a direction to the second respondent to take up the appeal and dispose of the same on merits and in accordance with law, after affording an opportunity of hearing to the petitioner. There shall be no order as to costs. Consequently, connected Miscellaneous Petitions are closed. NCC : Yes / No
2025 Index : Yes / No PKN ____________ https://www.mhc.tn.gov.in/judis To:-
The State Tax Officer Inspection II, Office of the Joint Commissioner ST Intelligence, Trichy, I floor, No.107 B2, Thilai Nagar, North East Extn, Trichy 18. 2. The Appellate Deputy Commissioner ST, Goods and Services Tax, Trichy Vellore Division, 2nd Main Road, Ponnagar, Trichy 1. ____________ https://www.mhc.tn.gov.in/judis VIVEK KUMAR SINGH
, J.
PKN
2025 ____________ https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.