Sri Pavithra Agencies Vs Deputy Commissioner (GST Appeal) (Madras High Court)
The Madras High Court dealt with a writ petition challenging an assessment order dated 26.12.2025 passed under Section 73 of the TNGST Act. The petitioner, a trader primarily dealing in exempt goods such as petroleum products, contended that only a minimal and negligible portion of its business involved taxable goods like rubber and lubricant oils falling within the GST regime. Despite declaring its turnover as exempt, the assessing authority did not accept the claim and passed the impugned order.
The respondent argued that it was the responsibility of the assessee to substantiate the exemption claim with proper documentary evidence, and in the absence of such evidence, the assessment order was justified. Upon examining the submissions and records, the Court noted that although the petitioner had filed a reply to the show cause notice, the order was passed primarily due to lack of supporting documents.
Considering the petitioner’s assertion that only a minimal portion of goods attracted GST, the Court found it appropriate to grant another opportunity to substantiate the exemption claim. Accordingly, the impugned order was set aside. The Court directed the petitioner to submit an additional reply along with all relevant supporting documents within two weeks. The respondent authority was instructed to reconsider the matter afresh in accordance with law after receiving the documents.
