Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Mad) 37404

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY, J
R.V Modern Rice Mill – Appellant
Versus
State Tax officer Pudukottai-II Assessment Circle Pudukottai – Respondent
W.M.P(MD)No.8905 of 2026

Advocates:
For the Appellants/Petitioners: Mr.A.Satheesh Murugan
For the Respondents: Mr.R.Suresh Kumar Additional Government Pleader

Court remands ex parte GST assessment for fresh hearing on equitable grounds, subject to 25% pre-deposit of disputed tax, balancing natural justice and revenue protection. (28 words)

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 impugned assessment order and consequential recovery notice - Despite discrepancies noted and assessee's explanation on merits, court grants opportunity to assessee to present submissions and documents before assessing officer on equitable grounds subject to condition of depositing 25% of disputed tax amount - Impugned orders set aside and matter remanded for fresh consideration in accordance with law - Bank account attachment raised. (Paras 3, 4 and 5)

Facts of the case:
Writ petition filed under Article 226 of the Constitution challenging ex parte assessment order under Section 73 of the TNGST Act, 2017 and consequential recovery order on grounds of illegality, lack of jurisdiction and violation of natural justice principles, as assessee did not avail opportunities provided.

Findings of Court:
Impugned orders dated 29.04.2024 and 30.04.2024 set aside upon deposit of 25% of disputed tax amount; matter remanded to assessing officer for fresh consideration after assessee submits reply and documents; any bank account attachment raised.

Issues: Whether ex parte assessment orders violated natural justice and warranted quashing; whether opportunity for fresh hearing should be granted subject to pre-deposit.

Ratio Decidendi: Court may remand ex parte assessment orders for fresh consideration on equitable grounds despite discrepancies, subject to conditional pre-deposit of 25% disputed tax, enabling assessee to present case while protecting revenue interests.

Result: Writ petition allowed with conditions.

Table of Content
1. writ petition challenges ex parte gst assessment orders. (Para 1 , 2)
2. grants opportunity to assessee on depositing 25% tax. (Para 4)
3. allows writ, remands matter with conditions. (Para 5)

ORDER

This writ petition challenges the impugned order dated

29.04.2024 and 30.04.2024 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 orders, 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. Therefore, an opportunity is granted to the petitioner assessee on the condition of depositing 25% of the disputed tax amount.

5. 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 25% of the disputed tax amount with the respondent, without waiting for a certified copy of the order.

ii. Upon such deposit, the impugned orders dated 29.04.2024 and

30.04.2024 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 orders of assessment are set aside, any attachment of the bank account made pursuant to the impugned order shall stand raised.

v. No costs. Consequently the connected miscellaneous petition shall stand closed.

21.04.2026 Index: Yes Speaking Order: Yes Neutral Citation: No rgm D.BHARATHA CHAKRAVARTHY , J .

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2026 Supreme(Online)(Mad) 37404

IN THE HIGH COURT OF JUDICATURE AT MADRASD.BHARATHA CHAKRAVARTHY, JR.V Modern Rice Mill – AppellantVersusState Tax officer Pudukottai-II Assessment Circle Pudukottai – RespondentW.M.P(MD)No.8905 of 2026

Court remands ex parte GST assessment for fresh hearing on equitable grounds, subject to 25% pre-deposit of disputed tax, balancing natural justice and revenue protection. (28 words)

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY, J
R.V Modern Rice Mill – Appellant
Versus
State Tax officer Pudukottai-II Assessment Circle Pudukottai – Respondent
W.M.P(MD)No.8905 of 2026