The burden of proof for claiming tax exemption based on HSN classification lies with the dealer; however, the court may grant an opportunity to produce such evidence by remanding the matter for fresh consideration.

ORDER

This writ petition is filed challenging the impugned order dated 16.12.2025. The same is an order of assessment passed under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017, for the assessment year 2021-2022.

The impugned order has been passed on the premise that the business of rice that the petitioner deals with, comes under HSN 1104 and such is taxable at the rate of 5%.

According to the petitioner, the rice is neither branded nor it is sold in package of below 26 kilograms. As such, it comes under HSN 1006 and is exempt from tax.

The learned Additional Government Pleader appearing on behalf of the respondents would submit that it is for the dealer to produce such proof that the goods come under HSN 1006. A perusal of the impugned order, the dealer has failed to produce such supporting documents except for claiming exemption.

I have considered the rival submissions made on either side and perused the material records of the case.

There can be no quarrel over the proposition argued by the Additional Government Pleader that it is for the Dealer to have produced such document in support of their claim. As a matter of fact, a perusal of the impugned order, it can be seen that only because the assessee did not produce the supporting documents in terms of their claim to prove that their supply was above 26 kilograms and that it was not a branded product, the impugned order came to be passed.

Considering the overall facts and circumstances of the case, I am of the view that an opportunity can be granted to the petitioner assessee, usually this Court imposes the condition to deposit 25% of the taxable amount, but however, considering the fact that in this case the goods are claimed to be exempted, I am of the view that no such additional condition need be imposed in the present writ petition.

This writ petition is allowed on the following terms:

(i)The impugned order dated 16.12.2025 shall stand set aside and the matter shall stand remanded back to the file of the respondent within a period of two weeks from the date of receipt of the web copy of the order. It will be open for the petitioner to file such additional reply and produce such documents and it is for the respondent to consider the same and pass orders afresh.

No costs. Consequently, connected miscellaneous petition is closed.

20.04.2026

NCC:Yes/No Ns To

The State Tax Officer, Dindigul(Rural) Assessment Circle,

Commercial Tax Building, Dindigul