TVL Zion Agencies Vs Deputy State Tax Officer (Madras High Court)
Madras High Court has quashed an assessment order dated December 12, 2023, issued against TVL Zion Agencies for the tax period 2017-18, related to a disputed tax amount of Rs. 50,11,324. The order was set aside on terms, primarily due to the petitioner’s non-participation in the prescribed adjudication mechanism.
The impugned order was preceded by several notices, including Form ASMT-10 (dated June 30, 2023, and September 29, 2023), Form DRC-01A (dated October 5, 2023), and multiple personal hearing notices in November 2023. The Court observed that the petitioner had not engaged in the adjudication process, leading to an adverse ex-parte order and a subsequent demand notice on March 12, 2024.
Citing similar circumstances in previous cases, where the Court provided relief by quashing assessment orders subject to a pre-deposit, the Madras High Court decided to adopt a similar approach.
The High Court has conditionally disposed of the Writ Petition. The impugned order stands quashed subject to the petitioner depositing 25% of the disputed tax amount in cash from their Electronic Cash Register with the respondent within 30 days of receiving the order copy. The petitioner is also directed to file a reply to the show cause notice that preceded the quashed order, which will now be treated as an addendum to the show cause notice. The respondent is directed to pass a fresh order on merits as expeditiously as possible after hearing the petitioner.
