Nallathambi Thangaraj vs. The Deputy State Tax Officer - I
Facts
The petitioner, Nallathambi Thangaraj, filed a writ petition before the Madurai Bench of the Madras High Court challenging an Order-in-Assessment in Form GST DRC-07, bearing Reference No.ZD331225133347N, dated 09.12.2025, passed by the Deputy State Tax Officer - I. The primary ground for challenging the order was a breach of the principles of natural justice, specifically that the order was issued without providing the petitioner with a hearing. The petitioner agreed to pay 25% of the disputed tax demand as a condition for the matter to be remanded for fresh adjudication.
Held
The Court held that the impugned Order-in-Assessment dated 09.12.2025 was indeed issued without hearing the petitioner, thereby violating the principles of natural justice. Consequently, the Court set aside the impugned order. As a condition for this relief, the petitioner was directed to remit 25% of the tax demand under the impugned order within thirty days from the date of receipt of the Court's order. Upon such remittance, the respondent was directed to provide the petitioner with a reasonable opportunity to contest the matter on merits and issue a fresh order within five months from the date of remittance. The ratio decidendi is that an order passed without affording a personal hearing to the assessee, when such a hearing is a fundamental aspect of natural justice, is unsustainable and liable to be set aside, subject to appropriate conditions for ensuring compliance and fair adjudication.
Key Issues
1. Whether the impugned Order-in-Assessment dated 09.12.2025, passed by the Deputy State Tax Officer - I, is liable to be quashed on the ground of violation of the principles of natural justice, specifically the lack of a personal hearing for the petitioner? The petitioner argued that the order was passed without affording them an effective opportunity of personal hearing, thus violating fundamental principles of natural justice. The petitioner contended that this procedural lapse rendered the order illegal, arbitrary, and without jurisdiction. The petitioner also agreed to pay 25% of the disputed tax demand as a condition for remand. The respondent, represented by the Government Advocate (Taxes), accepted notice. The judgment does not record any specific arguments made by the respondent against the petitioner's claim of breach of natural justice, beyond accepting notice and appearing before the court.
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 13-10-2026 CORAM THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY CNR:{HCMD011437572026} AND WMP(MD) No. 22086 of 2026 WMP(MD) No. 22091 of 2026 Nallathambi Thangaraj ..Petitioner(s)
Vs The Deputy State Tax Officer - I (Deputy Commercial Tax Officer), Ponmalai Assessment Circle, Commercial Taxes Department, Multi Store Building, Commercial Taxes Department Campus, Khajamalai, Tiruchirappalli ..Respondent(s) PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, calling for the records of the 1st respondent culminating in the impugned Order-in-Assessment order in Form GST DRC-07 bearing Reference No.ZD331225133347N dated 09.12.2025, quash the same as illegal, arbitrary without juri iction and consequently direct the respondent to afford an effective opportunity of personal hearing and adjudicate on merits in accordance with law. __________ https://www.mhc.tn.gov.in/judis For Petitioner(s): M/s I.Velpradeep For Respondent(s): M/s.P.Sudarkodi Natchiyar
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