2025 (2) TMI 879 - HC - GST

Challenge to assessment order - AO did not follow the required procedures u/s 74 of the Tamil Nadu Goods and Services Tax Act 2017 or the guidelines provided in a circular issued by the Commissioner of State Tax - HELD THAT - A perusal of the order impugned would also show that the Assessing Officer had not made any determination of the tax payable by the petitioner as envisaged under Section 74 of the Act nor has followed the guidelines issued in Circular dated 29.08.2024 of the Commissioner of State Tax. In such view of the matter the order impugned suffers from vice of arbitrariness. For the said reason the order impugned is liable to be interfered with. The matter is remitted back to the first respondent for fresh consideration - Petition allowed by way of remand.

Summary

The High Court of Madras, in a case concerning the assessment order for the year 2019-20, found that the Assessing Officer did not follow the required procedures under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017, or the guidelines provided in a circular issued by the Commissioner of State Tax. The court held that the order was arbitrary and set it aside, remitting the matter back for fresh consideration. The petitioner was given two weeks to submit a reply with supporting documents, and the Assessing Officer was directed to provide a hearing and issue a reasoned order within eight weeks. No costs were awarded in this decision.