Roundwell Raja Water Vs Deputy State Tax Officer (Madras High Court)
The writ petition challenged an assessment order dated 15.12.2025 passed under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017.
The petitioner contended that it supplied water in containers transported through lorries to customers’ premises and that such supply was exempt from taxation. The respondent submitted that the assessment order was passed on the basis that the petitioner was supplying packaged drinking water, which falls within the taxable category.
The Madras High Court observed that mere supply of water through tankers, lorries, or similar means is exempt from tax. However, packaged drinking water sold with a brand name and packaging falls within the tax net. The Court noted that the assessment order had been passed because the petitioner failed to produce proof supporting its claim that it supplied only water through lorries and tankers.
The Court held that when a taxpayer claims an exemption, the burden lies on the taxpayer to establish eligibility for such exemption before the assessing authority. Therefore, it was for the petitioner to prove that the supply consisted only of water transported through lorries and tankers and not packaged drinking water.
Considering the circumstances, the Court granted the petitioner one more opportunity to substantiate its claim. The assessment order dated 15.12.2025 was set aside and the matter was remanded to the respondent. The petitioner was directed to file an additional reply along with supporting documents within two weeks from receipt of the web copy of the order. The respondent was directed to consider the materials produced and pass appropriate orders in accordance with law. No costs were awarded.
