Tvl. VARS Enterprises Vs State Tax Officer (Madras High Court)
The Madras High Court allowed the writ petition challenging an ex parte assessment order dated 14.11.2025 passed under Section 74 of the CGST Act, 2017. The assessment had been completed because the petitioner failed to participate in the proceedings. The dispute related to a mismatch between GSTR-3B and GSTR-2A. On merits, the petitioner contended that the issue stood covered by Circular No. 183/15/2022-GST dated 27.12.2022 and expressed willingness to submit a detailed reply along with supporting records in accordance with the circular. Explaining the non-participation, the petitioner stated that the notice and impugned order had only been uploaded on the GST portal and that the accountant had not informed them about the same, resulting in the ex parte order.
Considering the nature of the discrepancy, the explanation offered on merits, and the reasons for not availing the opportunity, the Court held that the petitioner should be granted an opportunity to present submissions and supporting documents before the assessing officer. The Court, however, imposed the condition that the petitioner deposit 25% of the disputed tax amount within four weeks. Upon such deposit, the assessment order would stand set aside and the matter remanded for fresh consideration. Any bank account attachment arising from the impugned order was also directed to be lifted. No costs were awarded.
