Tvl Jai Nidhi Automation Vs State Tax Officer (Madras High Court)
Madras High Court has quashed an assessment order issued by the State Tax Officer against Tvl Jai Nidhi Automation, ruling that the inclusion of new issues in the final order without providing prior notice or an opportunity for a hearing constitutes a clear violation of the principles of natural justice. The court has remanded the matter back to the tax authorities for fresh consideration.
The case revolved around a Goods and Services Tax (GST) assessment for Tvl Jai Nidhi Automation. Initially, a show cause notice (DRC-01) was issued on November 29, 2024, outlining 19 specific issues against the petitioner. Tvl Jai Nidhi Automation duly filed its reply to this notice on December 29, 2024.
However, when the impugned assessment order was passed on January 16, 2025, it introduced five additional issues that had not been mentioned in the original show cause notice. The petitioner contended that no opportunity was provided to respond to these new allegations, either through a reply or a personal hearing. This, according to the petitioner, demonstrated a “total non-application of mind” by the respondent and meant the order “travels beyond the scope of show cause notice.”
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