Facts of the Case

The petitioner, Tvl. Lingeswari Exports (GSTIN 33ALMPL4224C1ZI), challenged an ex-parte assessment order dated 07.11.2024 passed under Section 73 of the TNGST Act, 2017 for the period 2020-21. The petitioner contended the order was cryptic, non-speaking, barred by limitation, and passed without her knowledge since notice was uploaded only on the GST portal. The order had also led to attachment of the petitioner's Input Tax Credit account. The petitioner sought quashing of the order and a fresh assessment in line with CBIC Circular No.193/05/2023-GST governing speaking orders under GST.

Issues Involved

  1. Whether an ex-parte, non-speaking assessment order passed solely on portal-uploaded notice can be sustained.
  2. On what terms such an order should be set aside to balance revenue protection with the assessee's right to be heard.

Petitioner's Arguments

  • The order was passed ex-parte as notice was served only through the online portal, of which the petitioner remained unaware.
  • The order was cryptic and non-speaking, violating the requirement of reasoned adjudication under the applicable CBIC circular.
  • The order was also barred by limitation and wholly without jurisdiction.

Respondent's Arguments

  • The Additional Government Pleader submitted that in similar matters relief had been granted by directing the assessee to deposit 25% of the disputed tax amount as a condition for reconsideration.

Court Order / Findings

  • The Court accepted that the ex-parte order suffered from a lack of proper notice and non-speaking reasoning, warranting interference, but conditioned relief on payment of pre-deposit to protect revenue.
  • On deposit of 25% of the disputed tax through the electronic cash ledger within 30 days, the attachment on the ITC account shall be lifted and the impugned order stands quashed.
  • The petitioner must thereafter file a reply to the show cause notice within 30 days, following which a personal hearing must be granted and a final order passed within two months.
  • Failure to comply with the deposit or reply timelines automatically revives the impugned order and the benefit of the order stands recalled.

Important Clarification

  • Madras High Court continues to grant conditional relief against cryptic, portal-only ex-parte GST orders by requiring a percentage pre-deposit rather than an unconditional quashing, balancing assessee rights against revenue interest.
  • Such conditional orders carry an automatic self-recall clause if the assessee fails to meet the deposit or reply deadlines, making compliance time-bound and non-negotiable.

Sections Involved

  • Section 73, TNGST Act, 2017 - determination of tax not paid/short paid for reasons other than fraud.
  • Section 169, TNGST Act, 2017 - modes of service of notice, relevant to portal-only service.

Decision – In Favour of

Disposed of with directions, in part in favour of the petitioner - order quashed conditional on 25% pre-deposit and fresh hearing.

Case Details

  • Court: Madurai Bench of the Madras High Court
  • Case No.: W.P.(MD) No.25231 of 2025
  • Coram: Justice G.R. Swaminathan
  • Date: 15th September, 2025

Link to Download the Order

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