Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Mad) 42391

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J
Murali Store – Appellant
Versus
State Tax Officer – Respondent
W.M.P(MD)No.9608 of 2026

Advocates:
For the Appellants/Petitioners: Raja. Karthikeyan
For the Respondents: R.Sureshkumar

An ex-parte assessment order may be set aside by the High Court under Article 226 of the Constitution to grant the assessee a fair opportunity to present their merits, provided that the interest of justice requires a fresh adjudication of the matter.

Headnote:(A) Constitution of India - Article 226 - Tamil Nadu Goods and Services Tax Act, 2017 - Section 73 - Writ of Certiorarified Mandamus - Impugned assessment order passed ex-parte without effective participation of assessee - Court granted opportunity to assessee to present submissions and produce documentation, setting aside original order - Attachment of bank account raised, and matter remanded for fresh assessment. (Paras 1, 3, 4 and 5)

Facts of the case:
An assessment order was passed ex-parte under the state tax statute as the dealer failed to utilize opportunities provided to participate in the proceedings. The petitioner challenged the order via a writ petition, seeking to quash the assessment and requesting a remand for fresh proceedings on the grounds that the dealer deals in exempted items.

Findings of Court:
Considering the explanation for the non-participation and the nature of the business operations, the Court found it equitable to provide the petitioner another opportunity to present their case. The assessment order was set aside and the matter was remanded for fresh adjudication, subject to the conditions of participation without failure.

Issues: Whether the ex-parte assessment order should be set aside to allow the assessee a fair opportunity to present their case and documentation before the assessing authority.

Ratio Decidendi: Courts may exercise equitable jurisdiction under Article 226 to set aside ex-parte assessment orders and remand matters for fresh adjudication where it is demonstrated that a fair opportunity to participate in the proceedings is warranted, while ensuring appropriate procedural safeguards are met.

Result: Writ petition allowed. Impugned order set aside and matter remanded.

Table of Content
1. context of the writ petition and ex-parte order challenge. (Para 1 , 2 , 3)
2. equitable grounds justify granting a second opportunity to the assessee for assessment. (Para 4)
3. remand of the case for de-novo assessment and lifting of bank attachments. (Para 5)

ORDER

This writ petition challenges the impugned order dated 29.12.2025 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 for the respondent.

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. Since it is claimed that the petitioner is dealing with grocery and other agro-herbal products which are exempt from tax, the usual condition of 25% is not imposed in this case.

5. In view thereof, this Writ Petition is allowed on the following terms:

(i) The impugned order dated 29.12.2025 shall stand set aside, and the matter shall stand remanded back to the file of the respondent;

(ii) 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;

(iii) 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 the connected miscellaneous petition is closed.

28.04.2026 sji NCC: Yes/No To The State Tax Officer, Gandhi Market Assessment Circle, Trichy-20.

Click Here to Read the rest of this document

2026 Supreme(Online)(Mad) 42391

IN THE HIGH COURT OF JUDICATURE AT MADRASD. Bharatha Chakravarthy, JMurali Store – AppellantVersusState Tax Officer – RespondentW.M.P(MD)No.9608 of 2026

An ex-parte assessment order may be set aside by the High Court under Article 226 of the Constitution to grant the assessee a fair opportunity to present their merits, provided that the interest of justice requires a fresh adjudication of the matter.

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J
Murali Store – Appellant
Versus
State Tax Officer – Respondent
W.M.P(MD)No.9608 of 2026