Invalid assessment under omitted tax provision requires reissuance as show cause and fresh hearing before appropriate authority

Impugned assessment issued under an omitted statutory provision was found invalid because the authority relied on a provision removed by amendment; the order was set aside. The defective notice must be treated as a show cause notice and the respondent is directed to permit the taxpayer to file a reply/objection with supporting documents within six weeks; thereafter the authority must issue a clear 14-day notice fixing a date for personal hearing and pass fresh adjudication on merits in accordance with law. The petition is disposed, mandating re-adjudication consistent with the substituted provision and procedural fairness.

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Issues: Whether an assessment/order passed under Section 74 of the Tamil Nadu Goods and Services Tax Act for the year 2024-2025 is valid where Section 74 was omitted by a 2024 amendment and assessment should instead proceed under Section 74A.

Analysis: The impugned order was examined to determine the statutory basis invoked. The record shows the respondent issued the order under Section 74 despite Section 74 having been omitted by a 2024 amendment. The respondent conceded the use of the incorrect provision. Given the omission, the procedural and substantive requirements for assessment must follow the provision that remains in force, namely Section 74A, and the action taken under the omitted provision cannot stand as a valid assessment. The appropriate remedial course is to treat the impugned order as a show cause notice and permit the assessee to reply, followed by fresh consideration and personal hearing under the correct statutory provision.

Conclusion: The impugned order passed under Section 74 is set aside; the order is to be treated as a show cause notice, the petitioner permitted to file reply/objection within six weeks, and the respondent directed to issue a 14-day notice fixing personal hearing and thereafter pass appropriate orders on merits under the correct provision (Section 74A).

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