Tmt.Ganga vs State Tax Officer, Palakkarai Assessment Circle

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2026 Supreme(Online)(Mad) 39017

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.Bharatha Chakravarthy, J
Tmt.Ganga – Appellant
Versus
State Tax Officer, Palakkarai Assessment Circle – Respondent
W.M.P.(MD) Nos.7982 & 7984 of 2026

Important Points

Assessment order quashed for non-consideration of reply and lack of reasons, violating natural justice.

Subject

Taxation - GST Assessment

Act Referred

TNGST Act: S.73, S.16(5)

Headnote

The petitioner challenged an assessment order under Section 73 of the TNGST Act, 2017, claiming violation of natural justice due to non-consideration of reply citing Section 16(5) regarding belated input tax credit. The court found the order suffered from non-application of mind as no reasons were assigned to the reply. The impugned order was set aside and remanded for fresh consideration. The main issue was whether the assessment order properly addressed the petitioner's reply under Section 16(5). The ratio decidendi holds that failure to consider reply and assign reasons renders the order invalid due to non-application of mind, violating natural justice principles. The writ petition was allowed; impugned order dated 02.08.2024 set aside, matter remanded to first respondent for fresh consideration in accordance with law, with liberty to file additional reply and documents.

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

Table of Content
1. challenges assessment order under tngst act s.73. (Para 1)
2. order ignores reply citing s.16(5) on input tax credit. (Para 2)
3. order quashed for non-application of mind; remanded. (Para 3)

O R D E R

This Writ Petition is filed challenging the impugned order dated

02.08.2024, which is an order of assessment passed under Section 73 of the TNGST Act.

2. Upon considering the impugned order of assessment, it is seen that it also relates to the belated claim of input tax credit. It is further seen that the petitioner had filed a reply referring to Section 16(5) of the Act. However, the said reply has not been considered, and no reasons have been assigned with reference to the contentions raised therein.

3. In view thereof, the impugned order suffers from non-application of mind and is liable to be quashed. Accordingly, this Writ Petition is allowed on the following terms:

i. The impugned order dated 02.08.2024 is set aside and the matter is remanded back to the file of the first respondent for fresh consideration.

ii. Apart from the original reply, it is open for the petitioner to file an additional reply, if any and produce additional documents, if any, within a period of two weeks from the date of receipt of a web copy of this order, without waiting for the certified copy of the order.

iii. Thereafter, it is for the first respondent to consider the matter afresh and pass orders in accordance with law.

iv. No costs. Consequently, the connected Miscellaneous Petitions are closed.