Non Participation Due To Ignorance; Case Remanded

Case Details: Sivasakthi Constructions vs. Joint Commissioner (ST) [2026] 182 taxmann.com 349 (Madras)

Judiciary and Counsel Details

C. Saravanan, J.
S. Velu for the Petitioner.
V.Prashanth Kiran, Government Adv. for the Respondent.

Facts of the Case

The petitioner challenged ex parte assessment orders confirming GST demands. Show Cause Notices in GST DRC-01 were issued for the respective tax periods, to which the petitioner failed to reply, resulting in the impugned assessment orders. In an affidavit filed in support of the writ petition, the petitioner contended that it was unaware of the proceedings and did not participate in the adjudication. It sought leniency by submitting that it supported marginalized sections of society by providing employment and requested an opportunity to defend the case. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that under similar circumstances, orders have been quashed and remitted for fresh adjudication on terms, subject to the assessee depositing 50% to 100% of the disputed tax depending upon the delay in approaching the Court. The assessee was directed to file a reply to the SCN together with requisite documents substantiating the case, treating the respective impugned orders as an addendum to the SCN. The Court held that the concerned authority should pass a final order on merits and in accordance with law as expeditiously as possible, applying Section 75 of the CGST Act/Tamil Nadu GST Act.