Facts of the Case

Tvl. Maruthi Trading Corporation, a proprietorship in Theni district, challenged an assessment order dated 06.06.2023 passed by the Assistant Commissioner (CT), Theni-I Circle, for the year 2021-22, which appears to have been issued in connection with a certificate/clearance required from the Kodaikanal Municipality.

The dispute concerns municipal profession/property-tax assessment procedure — specifically, whether the petitioner was given a proper opportunity of hearing before the assessment was finalised — and does not involve any question of GST law.

The Madurai Bench found merit in the petitioner's grievance regarding lack of opportunity and set aside the assessment order, remitting the matter for a fresh assessment with a hearing.

Issues Involved

  1. Whether the assessment order dated 06.06.2023 for the year 2021-22 was passed without affording the petitioner an adequate opportunity of hearing.

Petitioner's Arguments

  • The impugned assessment order was passed without properly considering the petitioner's certificate/documents and without an adequate opportunity of hearing.

Respondent's Arguments

  • The specific defence of the Assistant Commissioner (CT) and the Municipality is not detailed at length in the extracted portions of the order beyond contesting the assessment's validity.

Court Order / Findings

  • The Court set aside the assessment order dated 06.06.2023 for the year 2021-22.
  • The Assistant Commissioner (CT) was directed to redo the assessment for the year 2021-2022, taking into account the fresh certificate issued by the Kodaikanal Municipality, after affording the petitioner an opportunity of hearing.
  • No costs were awarded, and the connected miscellaneous petition was closed.

Important Clarification

This is a municipal/profession-tax matter decided on natural-justice grounds (want of hearing) — GST is not the subject of the dispute or the order, and readers should not treat this as any kind of GST ruling.

Sections Involved

  • Tamil Nadu District Municipalities Act, 1920 — profession/property tax assessment provisions
  • Constitution of India, 1950 — Article 226 (writ jurisdiction) and principles of natural justice

Decision – In Favour of

Decided in favour of the petitioner to the extent that the assessment order was set aside and remitted for fresh assessment with a hearing — the Court did not rule on the correctness of the tax liability itself.

Case Details

  • Court: Madurai Bench of the Madras High Court
  • Case No.: W.P(MD)No.24408 of 2023 and WMP(MD) No.20599 of 2023
  • Coram: Hon'ble Mr. Justice B. Pugalendhi
  • Date of Order: 31.10.2023

Link to Download the Order

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