2026 Supreme(Online)(Mad) 42544

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J
Srivilliputhur Co-operative Urban Ltd. – Appellant
Versus
Proper Officer – Respondent
W.M.P(MD)Nos.9303 and 9305 of 2026

An ex-parte assessment order may be set aside and remanded for de novo adjudication if the assessee presents a valid reason for prior non-participation, thereby ensuring the principles of natural justice are satisfied without imposing burdensome pre-conditions for such relief.

Headnote:(A) Tax Law - Tamil Nadu Goods and Services Tax Act, 2017 - Section 73 - Assessment - Ex-parte order - Principles of natural justice - Where an assessment order is passed ex-parte due to non-participation of the assessee, and the assessee provides a valid justification for such absence while demonstrating an intent to present merits, the court may set aside the order and remand the matter for fresh consideration to ensure that the principles of natural justice are upheld.

(B) Writ Jurisdiction - Article 226 of the Constitution of India - Attachment of bank account - Attachment of bank account made pursuant to an impugned assessment order must be raised when said order is set aside by judicial review, ensuring that recovery proceedings do not prejudice the assessee’s right to a fair hearing. (Paragraphs 3, 4 and 5)

Facts of the case:
The petitioner challenged an ex-parte assessment order issued under the local Goods and Services Tax Act for an assessment year, alleging failure to avail of opportunities for participation. The petitioner sought the quashing of the order and the release of a bank account attached consequently.

Findings of Court:
The court observed that the petitioner was afforded an opportunity to present submissions but failed to utilize the same. However, in light of the explanation provided for the absence and the request for review, the court determined that the assessment should be reconsidered on its merits without the imposition of a mandatory pre-deposit condition.

Issues: The main issues were the validity of the ex-parte assessment order and the consequential attachment of the bank account.

Ratio Decidendi: The court ruled that providing a fair opportunity to an assessee to present evidence and submissions outweighs the finality of an ex-parte order, especially when the assessee offers to participate in proceedings, thereby justifying a remand for fresh adjudication.

Result: Writ petition allowed; order set aside and remanded; bank account attachment raised.

Table of Content
1. challenge to ex-parte assessment order under tngst act. (Para 1 , 2 , 3)
2. remand for adjudication without condition of pre-deposit. (Para 4)
3. setting aside order and lifting of bank attachment. (Para 5)

ORDER

This writ petition challenges the impugned order dated 08.10.2025, 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 first respondent assessing officer. It is submitted that on the very same subject matter, an earlier order has been passed accepting the explanation submitted by the assessee. However, though the Additional Government Pleader would submit that it is for the respondents to decide the matter afresh, I am of the view that in this case, the additional condition that is normally being imposed to deposit 25% need not be imposed.

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

(i) The impugned order dated 08.10.2025 shall stand set aside, and the matter shall stand remanded back to the file of the first respondent;

(ii) The assessee shall appear before the first respondent without fail and submit their reply and documents in support of their claim, and it is for the first 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 petitions are closed.

24.04.2026 sji NCC: Yes/No To The Proper Officer, Commercial Taxes Department, Srivilliputhur, Virudhunagar District.

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