M/s Selvam Agencies Vs The State of Tamil Nadu — Madras HC (2026) — LawSathi Research

M/s Selvam Agencies Vs The State of Tamil Nadu — Madras HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Tax Case disposed with directions: the Tribunal's order in S.T.A.No.53 of 2024 set aside and the Revenue appeal remanded to the Tribunal for a fresh hearing with an opportunity to the assessee to contest on merits, san limitation; assessee to appear before the Tribunal on 21.07.2025 and file written submissions within a month, whereafter the Tribunal to decide on merits after hearing both sides; connected Miscellaneous Petition C.M.P.No.11547 of 2026 closed; no costs.

Issue for consideration

Whether the revision proceedings taken by the authority were barred by limitation. +1 more

Court's answer

The revision proceedings taken by the authority are not barred by limitation; the revision was initiated under Section 27 of the Act because the authorities were satisfied that the return filed was incorrect and required to be revised.

Ratio / Principle

The Tribunal's order was an ex parte order adverse to the assessee; hence the Court considered it appropriate to give the assessee an opportunity to contest the matter on merits, san limitation.

Key takeaways

For this limited purpose, the order passed by the Appellate Tribunal in S.T.A.No.53 of 2024 is set aside and the Revenue appeal is remanded to the Tribunal to be revisited after giving an opportunity to the assessee.ratio¶29
The assessee shall appear before the Tribunal either in person or through counsel on 21.07.2025 and place its written submissions within a month.ratio¶29
Thereafter, the Tribunal shall pass an order on merits on hearing both sides.

Detailed headnote1 paragraphs

Madras High Court — Tax Case No. 13 of 2026 and C.M.P.No.11547 of 2026, decided 02-06-2026; order made by Dr.G.Jayachandran J., bench comprising Mrs Justice N. Mala (signed jointly, ¶31). M/s Selvam Agencies (assessee), aggrieved by the order of the Tamil Nadu Sales Tax Appellate Tribunal dated 20.01.2026 in State Tribunal Appeal No. 53/2024 — by which the Tribunal reversed the Appellate Authority's findings and partly allowed the Revenue's appeal, ex parte — filed this Tax Case under Section 60(1) of TNVAT Act, 2006 raising grounds including limitation. Held: (i) the revision proceedings initiated under Section 27 of the Act are not barred by limitation, the revision having been initiated because the authorities were satisfied the return filed was incorrect and required revision; (ii) since the Tribunal's order was ex parte and adverse to the assessee, it was appropriate to give the assessee an opportunity to contest the matter on merits, san limitation; (iii) accordingly the Tribunal's order in S.T.A.No.53 of 2024 was set aside for this limited purpose and the Revenue appeal remanded to the Tribunal to be revisited after giving the assessee an opportunity; (iv) the assessee to appear before the Tribunal on 21.07.2025 and place written submissions within a month, thereafter the Tribunal to pass an order on merits on hearing both sides. Tax Appeal disposed of; connected Miscellaneous Petition closed; no costs. Counsel: Ms.R. Hemalatha for the petitioner-assessee; Ms.Amirtha Poongodi Dinnakaran, Government Advocate (Tax), for the respondent State.