Tvl. Monikandan Vs Deputy State Tax Officer (Madras High Court)
The Madras High Court recently intervened in the case of Tvl. Monikandan versus the Deputy State Tax Officer, setting aside an assessment order and a subsequent order rejecting a rectification application. The court’s decision, delivered on June 25, 2025, emphasized a violation of natural justice principles.
Monikandan challenged an assessment order dated January 24, 2025, concerning the tax period of April 2020 to March 2021, and an order dated June 5, 2025, which rejected an application for rectification under Section 161 of the TNGST Act, 2017.
According to the petitioner, a show cause notice (DRC 01) issued on November 26, 2024, assessed a sum of Rs. 14,88,446/- with interest. Monikandan claimed to have paid Rs. 14,71,418/- even before replying to the notice. However, the respondent confirmed a demand of Rs. 6,82,488/- without accounting for the prior payment.
The subsequent rectification application was rejected on the grounds that the error was not “apparent on the face of the record,” as defined under Section 161 of the TNGST Act. The rejection order stated that the provision for rectification is limited to clerical, arithmetical, or typographical errors, and the issue raised required “substantive examination.”
