Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Mad) 37198

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J
Nagasree Traders Represented by its Proprietrix Usha Kumari – Appellant
Versus
Deputy State Tax Officer – Respondent
W.M.P(MD)No.8945 of 2026

Advocates:
For the Appellants/Petitioners: Mr.N.Sudalai Muthu
For the Respondents: Mr.R.Suresh Kumar Additional Government Pleader

Court sets aside ex parte GST assessment order on condition of 15% pre-deposit of disputed tax, remanding for fresh hearing to ensure natural justice on equitable grounds.

Headnote:(A) Tamil Nadu Goods and Services Tax Act, 2017 - Section 73 - Assessment order passed ex parte due to non-utilisation of opportunities by assessee - Challenge to order as cryptic, non-speaking, illegal, arbitrary, without jurisdiction - Court considers discrepancies noted, assessee's explanations, and reasons for non-participation - Grants opportunity to assessee to present submissions and documents before assessing officer on equitable grounds, subject to condition of depositing balance disputed tax. (Paras 3, 4, 5)

(B) Writ Petition - Certiorarified Mandamus - Remand of assessment proceedings - Condition of pre-deposit of 25% disputed tax (reduced to balance 15% where 10% already paid) for setting aside ex parte order - Assessee directed to appear, submit reply and documents; assessing officer to consider afresh and pass orders in accordance with law - Attachment of bank account raised upon compliance. (Para 6)

Facts of the case:
Writ petition challenges ex parte assessment order passed under Section 73 due to assessee's failure to avail opportunities. Discrepancies, explanations, and reasons summarised in table. Assessee paid 10% tax at appeal filing.

Findings of Court:
Impugned order set aside upon deposit of balance 15% disputed tax within four weeks; matter remanded for fresh consideration after personal hearing; bank account attachment raised.

Issues: Validity of ex parte assessment order and grant of fresh opportunity subject to pre-deposit condition.

Ratio Decidendi: Court extends opportunities on equitable grounds under conditions, including partial pre-deposit, to allow assessee to substantiate claims before fresh assessment.

Result: Writ petition allowed on terms specified.

Table of Content
1. challenges ex parte gst assessment order. (Para 1 , 2)
2. grants opportunity for fresh hearing. (Para 4)
3. sets aside order upon 15% deposit. (Para 5 , 6)

ORDER

This Writ Petition challenges the impugned order dated

12.11.2025 which is an assessment order passed under Section 73 of the TNGST Act 2017.

2. I have heard the learned counsel for the petitioner and the learned Additional Government Pleader representing the revenue. 3. By the impugned order, the assessment was made ex parte because the petitioner did not utilise the opportunities provided. The discrepancies and grounds on which the assessment order was issued, the dealer’s explanation on merits, and the reasons for not participating in the assessment proceedings are summarised briefly and presented in a table below:

4. Considering the nature of the discrepancies noted, the explanation provided by the assessee and the reason given before this Court for not availing the opportunity, I believe that an opportunity can be granted to the assessee to present their submissions and produce the relevant supporting documents before the respondent assessing officer. This Court has been extending such opportunities on equitable grounds; however, under appropriate conditions.

5. Normally, this Court grants an opportunity by imposing a condition to deposit 25% of the disputed tax. In this case, it is stated that at the time of filing of the appeal, the petitioner has paid 10%. Therefore, let the petitioner pay the balance 15% of the disputed tax amount.

6. In view of this, the writ petition is allowed on the following terms:-

i. Within four weeks of receiving the web copy of the order, the petitioner shall deposit 15% of the disputed tax amount with the respondent, without waiting for a certified copy of the order.

ii. Upon such deposit, the impugned order dated 12.11.2025 shall stand set aside, and the matter shall stand remanded back to the file of the respondent.

iii. The assessee shall appear before the respondent without fail and submit their reply and documents in support of their claim, and it is for the respondent to consider the matter afresh and pass orders in accordance with law.

iv. Since the impugned order of assessment is set aside, any attachment of the bank account made pursuant to the impugned order shall stand raised.

No costs. Consequently, connected Miscellaneous Petition is closed.

22.04.2026 NCC : Yes / No ps To The Deputy State Tax Officer, Nagercoil - 2 Assessment Circle, Commercial Taxes Buildings, Mead Street, Nagercoil.

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2026 Supreme(Online)(Mad) 37198

IN THE HIGH COURT OF JUDICATURE AT MADRASD. Bharatha Chakravarthy, JNagasree Traders Represented by its Proprietrix Usha Kumari – AppellantVersusDeputy State Tax Officer – RespondentW.M.P(MD)No.8945 of 2026

Court sets aside ex parte GST assessment order on condition of 15% pre-deposit of disputed tax, remanding for fresh hearing to ensure natural justice on equitable grounds.

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J
Nagasree Traders Represented by its Proprietrix Usha Kumari – Appellant
Versus
Deputy State Tax Officer – Respondent
W.M.P(MD)No.8945 of 2026