HC Sets Aside Ex Parte GST Order | Allows Fresh Adjudication

Case Details: P. Sankar Lorry Body Labour Works vs. Deputy State Tax Officer II [2026] 186 taxmann.com 1277 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• Abishek A.M. for the Petitioner.
• T.N.C. Kaushick, Special Government Pleader for the Respondent.

Facts of the Case

The petitioner challenged the impugned assessment orders passed under Section 73 of the CGST Act and the Tamil Nadu GST Act by filing writ petitions. The assessment orders had been preceded by a show-cause notice (SCN) in Form GST DRC-01, calling upon the petitioner to submit a reply and attend a personal hearing. The petitioner neither furnished any reply to the notice nor appeared before the adjudicating authority for the scheduled hearing. It was contended that the statutory period for filing an appeal against the impugned orders had expired long before the writ petitions were instituted, and sought an opportunity to contest the matter on the merits. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the proceedings initiated under Section 73 of the CGST Act and the Tamil Nadu GST Act should be reconsidered on merits, notwithstanding the expiry of the statutory period prescribed for appeal under Section 107. The Court held that the interests of justice warranted granting the petitioner a fresh opportunity to respond to the SCN and substantiate its case, subject to a pre-deposit of 25% of the disputed tax amount. The Court directed that the impugned assessment orders passed under Section 73 would be treated as an addendum to the SCN and that, upon compliance with the pre-deposit condition and submission of a reply along with supporting documents, the jurisdictional officer under the CGST Act and the Tamil Nadu GST Act should undertake de novo adjudication and pass a fresh order in accordance with law, preferably within three months.