Tvl.V.V.Amman Store vs. The Deputy State Tax Officer - 1

Facts

The petitioner, Tvl.V.V.Amman Store, represented by its Proprietor C.Rathinavelpandian, filed a writ petition challenging an Assessment Order dated 31.12.2025, passed by the Deputy State Tax Officer - 1, Thiruparankundram Assessment Circle, Madurai. This order was issued under Section 73 of the TNGST Act, 2017, following a Show Cause Notice dated 27.09.2025. The petitioner had not availed the personal hearing offered in the show cause notice and consequently suffered the impugned order. The writ petition was filed on 23.09.2026, after the limitation period for filing an appeal under Section 107 of the GST enactments had expired. The petitioner stated that their grocery store's supplies are exempted and offered to pre-deposit 10% of the disputed tax demand.

Held

The Court quashed the impugned Assessment Order dated 31.12.2025. This decision was made subject to the petitioner depositing 10% of the disputed tax in cash from their Electronic Cash Register within thirty days of receiving a copy of the order. The Court granted this concession based on the petitioner's submission that their supplies are exempted and their willingness to pre-deposit the tax. The case was remitted back to the respondent for a fresh adjudication. The petitioner was directed to file a reply to the Show Cause Notice dated 27.09.2025, along with supporting documents, within the same period. The respondent was instructed to pass a fresh order on merits after considering the reply and pre-deposit, preferably within three months. The Court also stipulated that if the petitioner fails to comply with these conditions, the respondent is at liberty to proceed with recovery as if the writ petition was dismissed. The respondent must provide due notice to the petitioner before passing any further order. The issue of whether the supplies were actually exempted was not decided on merits.

Key Issues

1. Whether the impugned Assessment Order dated 31.12.2025, passed by the Deputy State Tax Officer - 1, is liable to be quashed for gross violation of the Principles of Natural Justice, specifically the lack of a proper personal hearing, as argued by the petitioner. 2. Whether the Court should direct the respondent to re-do the assessment afresh after providing an opportunity for a personal hearing, as prayed by the petitioner. Petitioner's Contentions: The petitioner argued that the impugned order was passed in gross violation of the Principles of Natural Justice. They contended that their business, being a grocery store, involves exempted supplies under the GST enactments. The petitioner also agreed to pre-deposit 10% of the disputed tax as a condition for de novo adjudication. Respondent's Contentions: The respondent, represented by the learned Government Advocate (Taxes), took notice of the writ petition. No specific arguments were recorded from the respondent's side regarding the merits of the case or the petitioner's contentions, other than acknowledging the notice.