Facts of the Case

Tvl. Kumaran Sea Foods Private Limited, engaged in trading sea food such as crabs, trout and pacific salmon (goods claimed to be entirely exempt from tax), was assessed under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 by an order dated 20.11.2025, along with a demand raised in FORM GST DRC-07.

The assessment was passed on the ground that the petitioner had failed to upload documentary proof supporting its claimed exemption in response to the show-cause notice; the petitioner explained that, due to personal and business circumstances, it had missed the opportunity to reply and upload the relevant documents.

The petitioner approached the Madurai Bench of the Madras High Court by way of a writ petition, seeking to have the assessment order quashed and an opportunity to present its case and supporting documents.

Issues Involved

  1. Whether the assessee should be granted a fresh opportunity to present its exemption claim and supporting documents, given its explanation for having missed the earlier opportunity to reply to the show-cause notice.

Petitioner's Arguments

  • The petitioner traded exclusively in sea food that was wholly exempt from tax, and its failure to upload supporting documents was due to genuine personal and business circumstances rather than any intent to evade the proceedings.
  • An opportunity should be granted to present its submissions and supporting documents to the assessing officer before any adverse order was allowed to stand.

Respondent's Arguments

  • The Additional Government Pleader represented the revenue at the hearing; the order does not record specific opposition to the limited relief of remand ultimately granted.

Court Order / Findings

  • Considering the nature of the discrepancies noted, the explanation offered by the assessee, and the reason given for not availing the earlier opportunity, the Court held it appropriate to grant the assessee a further opportunity to present its submissions and produce supporting documents, noting it had been extending such opportunities on equitable grounds in appropriate cases.
  • It set aside the impugned assessment order dated 20.11.2025 and remanded the matter to the respondent, directing the assessee to appear and submit its reply and documents, and directing the respondent to consider the matter afresh and pass orders in accordance with law.
  • As a consequence of setting aside the assessment, any bank account attachment made pursuant to it was directed to be lifted.
  • No finding was made on whether the sea food traded by the petitioner was in fact exempt from tax — that question was left for the respondent to decide afresh after considering the petitioner's documents.

Important Clarification

This order does not decide whether the petitioner's sea food trade was actually exempt from GST — it only restores the petitioner's opportunity to place its exemption evidence on record before the assessing officer, who remains free to accept or reject that claim on its merits. Note that the order itself is dated 21.04.2026 in the source record, referencing an assessment period and case number as they appear on the certified document.

Sections Involved

  • Tamil Nadu Goods and Services Tax Act, 2017 – Section 73 (determination of tax not paid, short-paid, or erroneously refunded, other than by reason of fraud)
  • FORM GST DRC-07 (summary of the order creating demand)

Decision – In Favour of

Decided in the petitioner's favour on the procedural point — the assessment order was set aside and the matter remanded for a fresh decision after the petitioner is heard and allowed to submit its exemption documents; the bank attachment was lifted.

Case Details

Madurai Bench of the Madras High Court. W.P.(MD) No. 11743 of 2026 with W.M.P.(MD) No. 8931 of 2026 (Tvl. Kumaran Sea Foods Private Limited v. The Assistant Commissioner (ST)-2, Tuticorin). Coram: Hon'ble Mr. Justice D. Bharatha Chakravarthy. Dated 21.04.2026.

Link to Download the Order

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