2025 (6) TMI 1569 - HC - GST

Challenge to assessment order - petitioner has not participated in the adjudication mechanism prescribed under the TNGST Act 2017/CGST Act 2017 and has thus suffered an adverse order - HELD THAT - Under similar circumstances the Court has come to the rescue of a person like the petitioner by quashing the assessment order on terms subject to the payment of 25% of the disputed tax. There are no reason to take a different view in the facts and circumstances of the case. This Writ Petition is disposed of by quashing the impugned order on terms subject to the petitioner depositing 25% of the disputed tax with the respondent in cash from the Electronic Cash Register within a period of 30 days from the date of receipt of a copy of this order.

Summary

The Madras High Court, in the matter before Honourable Mr. Justice C. Saravanan, addressed a challenge to the impugned assessment order dated 12.12.2023 for the tax period 2017-18. The petitioner failed to participate in the adjudication process under the TNGST Act, 2017/CGST Act, 2017, resulting in an adverse order and a subsequent demand notice for Rs. 50,11,324/-. Relying on precedent where similar assessment orders were quashed subject to partial payment, the Court quashed the impugned order on the condition that the petitioner deposit 25% of the disputed tax within 30 days. The petitioner must also file a reply to the preceding show cause notice, with the quashed order treated as an addendum thereto. The respondent is directed to pass a fresh order on merits after hearing the petitioner, ensuring the petitioner's right to be heard.The Court clarified that failure to comply with these conditions will result in the writ petition being deemed dismissed, allowing the respondent to recover the disputed amount under the GST enactments. No costs were awarded, and connected Miscellaneous Petitions were dismissed.