Tax Assessment Order Quashed: 10% Tax Remittance Required, Fresh Reasoned Order Mandated Under Section 74 of TNGST Act

HC found assessment order under Section 74 of TNGST Act lacking substantive grounds. Order was quashed with directive for petitioner to remit 10% of disputed tax demand, enabling respondent to issue a fresh, reasoned assessment order within two months. Petition disposed without costs, emphasizing procedural fairness and natural justice principles.

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Issues involved:
The assessment order under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017 lacking allegations of fraud, wilful-misstatement or suppression of facts, and being unreasoned. The petitioner seeking rectification based on error apparent on the face of the record and absence of tax dues.

Summary:
The petitioner challenged an assessment order and an attachment notice, claiming unawareness of prior communications due to having filed GST returns. The assessment order was contested on grounds of lacking Section 74 requirements and being unreasoned, supported by evidence from the GST portal showing no shortfall. The respondent argued that the petitioner had been given opportunities for intimation, show cause notice, and personal hearing, citing adherence to principles of natural justice. The court found the assessment order unreasoned and not meeting Section 74 criteria, quashing it with the condition of remitting 10% of the disputed tax demand within two weeks for a fresh assessment order to be issued within two months. The writ petition was disposed of with no costs.

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