Tvl. Jeyam Agency Vs Deputy State Tax Officer (Madras High Court)
The Madras High Court heard a writ petition challenging an assessment order dated 17.12.2025 passed under Section 73 of the TNGST Act, 2017. The assessment had been completed ex parte as the petitioner failed to participate in the proceedings despite opportunities being provided.
The dispute related to the disallowance of exemption claimed on outward supplies, where the entire reported exempt turnover was treated as taxable. The petitioner contended that the turnover pertained to coconut, which is a primary agricultural produce exempt under Notification No. 2/2017-CTR, and therefore no tax was leviable. It was further submitted that tax had already been paid on taxable goods such as oil cake and that there was neither suppression nor misclassification of turnover. The petitioner also argued that the exemption was denied merely on assumptions without verification of invoices, stock records, or the nature of goods.
Regarding non-participation in the proceedings, the petitioner explained that reliance had been placed on a part-time accountant who failed to inform about notices and hearing dates. Due to this bona fide lapse, no reply was filed and no appearance was made, resulting in the ex parte assessment order.
