2026 Supreme(Online)(Mad) 42124

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J
Senthilkumar – Appellant
Versus
Assistant Commissioner of State Tax, Theni – Respondent
W.M.P.(MD)Nos.10447 and 10449 of 2026

An ex parte assessment order may be set aside on equitable grounds to ensure natural justice, provided the assessee is granted an opportunity to present their case subject to the condition of pre-depositing a portion of the disputed tax amount.

Headnote:(A) Constitution of India - Article 226 - Goods and Services Tax Act, 2017 - Section 73 - Certiorari - Ex parte assessment - Natural justice - Petitioner failing to utilize opportunities provided, leading to ex parte assessment order - Court finding that an opportunity may be granted to the assessee to present submissions and produce relevant documents on equitable grounds - Such opportunity is granted subject to the condition of depositing 25% of the disputed tax amount - Upon such deposit, the impugned assessment order stands set aside and the matter is remanded back to the assessing officer for fresh consideration. (Paras 1, 3, 4, 5)

Facts of the case:
The petitioner challenged an ex parte assessment order passed under the state tax legislation, citing the denial of effective opportunity. The concerned authority had finalized the assessment due to the petitioner's failure to participate in the proceedings, resulting in a levy of tax that the petitioner sought to quash as arbitrary and illegal.

Findings of Court:
The court observed that while the petitioner failed to avail prior opportunities, it is equitable to allow the taxpayer a chance to present their case on merits. Consequently, the court set aside the impugned order conditioned upon the payment of 25% of the disputed tax amount.

Issues: Whether the ex parte assessment order should be quashed and the matter remanded to the assessing authority given the petitioner's failure to participate in the initial assessment proceedings.

Ratio Decidendi: In the interest of justice and on equitable grounds, an assessee should be granted an opportunity to present documents and reply to assessments, provided there is a condition attached to compensate for the delayed compliance, such as the pre-deposit of a portion of the disputed tax.

Result: Writ petition allowed; impugned order set aside and remanded for fresh adjudication subject to condition of 25% tax deposit.

Table of Content
1. assessment order challenged due to prior ex parte proceedings (Para 1 , 2 , 3)
2. conditional remand granted to ensure principle of natural justice (Para 4)

ORDER

This writ petition challenges the impugned order dated 08.12.2025, 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. 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 order dated 08.12.2025 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.

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

30.04.2026 NCC : No smn2 To:-

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