Facts of the Case

The Joint Commissioner/Executive Officer of Arulmigu Ramanathaswamy Temple, Rameswaram, challenged an assessment order dated 10.07.2025 (GSTIN 332400002493TMP/2019-20) passed under Section 74 of the TNGST Act, 2017 for the assessment year 2019-20, along with the consequential demand notices in Form GST DRC-07 dated 16.07.2025. Personal hearing notices had been issued to the temple on three occasions, but on each occasion the temple did not appear, instead writing to the respondent seeking time on the ground that it was awaiting guidance from its superior authority.

Issues Involved

  1. Whether an assessment order can be quashed and remanded even where the assessee's explanation for repeated non-appearance at personal hearings is found unacceptable, given the special character of the assessee.

Petitioner's Arguments

  • The petitioner sought quashing of the impugned Section 74 assessment order and a direction to redo the assessment after affording a reasonable and effective opportunity of hearing and considering the documents furnished.

Respondent's Arguments

  • The respondent had issued personal hearing notices on three occasions, none of which were responded to with an appearance; the temple had only sought repeated adjournments citing want of guidance from its superior authority.

Court Order / Findings

  • The Court found the temple's explanation for its repeated non-appearance — awaiting guidance from a superior authority — to be not acceptable as a matter of ordinary hearing discipline.
  • However, taking into account that the interest of the temple (a public religious institution) was involved, the Court nonetheless quashed the impugned assessment order and remanded the matter to the respondent.
  • The petitioner was directed to appear before the respondent on 15.12.2025 with all relevant records and to submit its reply in person on that date, following which the respondent was to proceed in accordance with law.

Important Clarification

  • Even where an assessee's explanation for missing successive personal hearing opportunities is unacceptable, a court may still exercise discretion to quash an ex-parte assessment and grant one further opportunity where the assessee is a public institution (such as a temple administration) whose interests are affected, rather than mechanically upholding an adverse order for procedural default.
  • Such relief typically comes with a firm, one-time direction to appear and submit a reply in person on a fixed date, leaving no further latitude for adjournment.

Sections Involved

  • Section 74, TNGST Act, 2017 – determination of tax not paid by reason of fraud, wilful misstatement or suppression of facts.

Decision – In Favour of

Disposed of with directions, in favour of the Assessee — the assessment order was quashed and remanded, notwithstanding the Court's disapproval of the assessee's conduct.

Case Details

  • Court: Madurai Bench of Madras High Court
  • Case No.: W.P.(MD) No. 34560 of 2025 and W.M.P.(MD) No. 27339 of 2025
  • Coram: Hon'ble Mr. Justice G.R. Swaminathan
  • Date of Order: 28 November 2025

Link to Download the Order

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