Tax Assessment Order Overturned: Partial Tax Refund Granted, Detailed Reply Sought from Petitioner Under Section 73

HC set aside assessment order u/s 73 of TNGST Act for AY 2017-18, remanding case to respondents. Court directed petitioner to file detailed reply within 45 days and respondents to pass fresh orders within subsequent 45 days. 50% of deducted tax amount to be re-credited, preventing liquidity challenges for petitioner. No costs awarded.

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Issues involved:
Challenge to Assessment order u/s 73 of TNGST Act, 2017 for AY 2017-18.

Summary:

The petitioner challenged the impugned Assessment order dated 20.12.2023 passed for the Assessment Year 2017-18, which was based on parallel proceedings initiated by the second respondent under Section 65 of TNGST Act, 2017. The petitioner claimed unawareness of the proceedings u/s 73 of the Act and objected to the deduction made from their Electronic Credit Ledgers without prior knowledge of the order. The petitioner sought setting aside of the impugned order, alleging backdating of notices.

The learned Government Advocate argued that the petitioner had an alternate remedy under Section 107 of the TNGST Act, 2017 before the Deputy Appellate Commissioner.

After considering the submissions, the High Court set aside the impugned order and remitted the case back to the respondents to pass fresh orders on merits in accordance with the law. The Court directed the petitioner to file a detailed reply within 45 days and the respondents to pass final orders within 45 days thereafter. The Court also directed the re-crediting of 50% of the deducted tax amount to prevent the petitioner from facing liquidity issues. No costs were awarded, and connected miscellaneous petitions were closed.

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