[Cites 3, Cited by 0]
Madras High Court
Shyla Gold Angelin vs The State Tax Officer on 17 March, 2026
Author: D.Bharatha Chakravarthy
Bench: D.Bharatha Chakravarthy
W.P(MD)No. 6973 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED :17.03.2026
CORAM:
THE HONOURABLE MR JUSTICE D.BHARATHA CHAKRAVARTHY
W.P(MD)No. 6973 of 2026
and
W.M.P.(MD) Nos.5747 & 5749 of 2026
Shyla Gold Angelin,
Proprietor of Tvl.Y.Jeyasingh Contractor ... Petitioner
Vs
The State Tax Officer,
Nagercoil (Rural) Assessment Circle,
Commercial Taxes Building,
No.131, Mead Street,
Nagercoil. ... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, praying this Court to issue a Writ of Certiorari, calling for the
records on the files of the Respondent herein in FORM DRC - 07 with
Ref. No. ZD331225304851R along with detailed order in GSTIN -
33ACKPJ3325R1ZA/2018-2019 both dated 19.12.2025 for the tax
period APR 2018 - MAR 2019 and quash the same.
For Petitioner : Mr. A.P.Karventhan
For Respondents : Mr.R.Suresh Kumar
Additional Government Pleader
1/6
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W.P(MD)No. 6973 of 2026
ORDER
The writ petition is filed challenging the impugned order dated
19.12.2025. The impugned order is an order of assessment passed under
Section 73 of the TNGST Act, 2017, determining tax liability of
Rs.79,11,292/- and imposing interest of Rs.95,00,052/- and penalty of
Rs.7,91,128/-, in all totaling Rs.1,82,02,472/-.
2. The submission made by the learned counsel is that when the
show cause notice was issued to the petitioner, the ground on which it
was issued is that for the period April 2018 to March 2019, there is an
additional tax of Rs.25,37,612/- liablity to be paid on the ground that
there is a mismatch between Form GSTR 7 and Form GSTR 3B. Further,
when the petitioner appeared before the Authority and submitted a reply,
now the tax amount is assessed on the ground that there is a difference
between Form ITR 3 and Form GSTR 3B. The petitioner was not given
an opportunity to show cause in respect of the same.
3. In reply thereto, the learned Additional Government Pleader
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would submit that the new ground is not something that is proposed by
the Assessing Authority, but from the contents of the reply of the
petitioner himself.
4. The learned Additional Government Pleader would point out the
annexure that was contained along with the reply, whereunder the income
and expenditure account for the year ending up to 31-3-2019 was
enclosed only by the petitioner herein along with the reply. Therefore, if,
based on the same, the assessment order is passed, the opportunity cannot
be endlessly sought for every reason after the other, when substantially
with reference to the claim made, as a show cause notice is issued, no
further opportunity is necessary.
5. I have considered the rival submissions made on either side and
perused the material records of the case.
6. As rightly pointed out by the learned counsel for the petitioner,
the principles relating to the determination of tax are contained in
Section 75(7) of the TNGST Act, 2017, which categorically states that
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the assessment shall confine to the demand made. In this case, as
mentioned supra, when the initial demand was for a sum of
Rs.25,37,612/- on the ground of the difference between Form GSTR 7
and Form GSTR 3B, the order that was ultimately passed was for a sum
of Rs.1,82,02,472/- on the ground of the difference between Form ITR 3
and Form GSTR 3B. No doubt the said discrepancy came to the fore only
on account of the reply; however, from the reply or the documents filed
by the petitioner, the information or the ground on which the Assessing
Authority proposes to take into consideration and make an additional
levy should be put across to the petitioner and the petitioner should be
heard.
7. In view thereof, this writ petition is allowed on the following
terms:
(a) The impugned order dated 19.12.2025 stands quashed and the
matter stands remanded back to the respondent Authority;
(b) The respondent Authority is entitled to issue a comprehensive
show cause notice of all the discrepancies that are noted, including
with reference to Form GSTR-7 and Form GSTR-3B or Form
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ITR-3 and Form GSTR-3B;
(c) It is for the petitioner to appear before the respondent without fail
and file such a reply and documents in support of his contention;
(d) The same shall be considered by the respondent and appropriate
orders in accordance with law shall be passed; and
(e) No costs. Consequently, connected miscellaneous petitions are
closed.
NCC : Yes/No 17.03.2026
apd
To
The State Tax Officer,
Nagercoil (Rural) Assessment Circle,
Commercial Taxes Building,
No.131, Mead Street,
Nagercoil.
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D.BHARATHA CHAKRAVARTHY.,J.
apd
ORDER MADE IN
17.03.2026
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