2026 Supreme(Online)(Mad) 45961

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J
Narumanam Spices – Appellant
Versus
Superintendent of CGST & Central Excise – Respondent
W.M.P(MD)Nos.10419 and 10421 of 2026

When an ex parte assessment order is passed, the court may set aside the order and remand the matter to the assessing authority to ensure the principles of natural justice are upheld by granting the assessee a fair opportunity to present their case.

Headnote:(A) TNGST Act, 2017 - Section 73 - Assessment order - Ex parte assessment - Failure to provide adequate opportunity to the assessee - Writ of Certiorari - Setting aside and remand - Principles of natural justice demand that an assessee be given a fair opportunity to present their submissions and supporting documents before an adverse order is passed. (Paras 1, 3 and 4)

(B) Writ Jurisdiction - High Court’s duty to ensure equity - When an assessment order is passed ex parte due to non-participation of the assessee, and the court finds that the assessee is willing to cooperate, it is appropriate to remand the matter for fresh consideration to satisfy the principles of natural justice, while keeping in mind any attached bank accounts. (Paras 4 and 5)

Facts of the case:
The petitioner challenged an ex parte assessment order passed under the state tax legislation for the assessment year 2021-22. The petitioner had failed to utilize prior opportunities provided during the assessment proceedings. The petitioner sought the issuance of a writ of certiorari to quash the impugned order, citing a total lack of jurisdiction and violation of statutory provisions, while acknowledging the reasons for non-participation.

Findings of Court:
The court noted that the assessment was concluded in the absence of the assessee. In the interest of justice and on equitable grounds, the court deemed it fit to provide the petitioner with an opportunity to present their case. Since the disputed tax amount had already been realized, no further conditions were imposed, and the court ordered the restoration of attached assets following the setting aside of the assessment order.

Issues: The main issues were whether the ex parte assessment order violated the principles of natural justice and if the court should set aside the impugned order to allow the petitioner a fresh opportunity to present evidence and submissions.

Ratio Decidendi: An order passed ex parte without the assessee's participation, despite the assessee's willingness to rectify this by presenting evidence before the court, should be remanded to the assessing officer to ensure a decision is arrived at on merits in accordance with law.

Result: Writ petition allowed.

Table of Content
1. the assessment order was passed ex parte due to the petitioner's non-participation. (Para 1 , 3)
2. courts may remand a case to the assessing officer to provide a fair opportunity for the assessee to present their case. (Para 2 , 4)
3. remand of the matter and conditions for fresh assessment and lifting of attachments. (Para 5)

ORDER

This writ petition challenges the impugned order dated 12.12.2025, 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 Senior Standing Counsel representing 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.

Therefore, an opportunity is granted to the petitioner assessee.

5. Since the entire amount already realised, no further condition is imposed on the petitioner. In view thereof, this writ petition is allowed on the following terms:

(i) The impugned order dated 12.12.2025 shall stand set aside, and the matter shall stand remanded back to the file of the respondent;

(ii) Within four weeks from the date of receipt of a web copy of this order without waiting for the certified copy of the order, 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;

(iv) No costs. Consequently the connected miscellaneous petitions are closed.

01.06.2026 NCC : Yes/No sji To The Superintendent of CGST & Central Excise, Theni Range, No.5A-1, First Floor, Vasavi Colony, Palanichettipatti, Theni.

Click Here to Read the rest of this document