2026 (1) TMI 1455 - HC - GST

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 ... Invalidity of assessment issued under omitted provision - Requirement to invoke substituted provision - Writ jurisdiction of the High Court - Omission by 2024 amendment - HELD THAT:- On a perusal of the records, it is seen that the respondent has passed the impugned order under Section 74 of TNGST Act instead of Section 74A of the TNGST Act. As rightly contended by the learned counsel appearing for the petitioner, already Section 74 of the TNGST Act was omitted by a 2024 amendment, the impugned order is liable to be set aside. Accordingly, the impugned order dated 04.09.2025 passed by the respondent is set aside. The petitioner is directed to treat the impugned order as show cause notice and file their reply/objection along with the required documents, if any, to the said show case notice, within a period of six weeks from the date of receipt of a copy of this order. On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days clear notice, by fixing the date of personal hearing, to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible. Writ Petition is disposed of. 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).