Tvl. Km Tex Vs The State Tax Officer — Writ and Judicial Review | Madras HC (2026)

Tvl. Km Tex Vs The State Tax Officer — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of: impugned assessment order dated 28.08.2024 set aside conditional on the petitioner depositing Rs.30,000/-; matter remitted to the respondent authority for fresh orders after considering the petitioner's reply and documentary evidence in accordance with law; freezing of the petitioner's bank account to be raised upon deposit; no costs; connected miscellaneous petition (W.M.P(MD)No.5175 of 2026) closed.

Issue for consideration

Whether the assessment order dated 28.08.2024 passed under Section 73 of the TNGST Act 2017, disallowing the petitioner's input tax credit solely because Form GSTR-3B was filed belatedly, can stand in view of Section 16(5) of the TNGST Act 2017 (inserted by the Finance (No.2) Act 2024), under which GSTR-3B filed on or before 30.11.2020 is to be considered as filed in time; the petitioner sought quashing of the order as cryptic, barred by limitation, non-speaking and without jurisdiction, and a direction for fresh assessment after affording opportunity of hearing. +1 more

Court's answer

On that basis, the impugned order dated 28.08.2024 was set aside, on condition that the petitioner deposits a sum of Rs.30,000/-.

Ratio / Principle

The court accepted the legal position that by virtue of Section 16(5) of the TNGST Act 2017, an exemption applies with reference to the filing of GSTR Form 3B — forms filed on or before 30.11.2020 are to be considered as filed in time and the delay need not be taken into account — and the learned Additional Government Pleader was not in a position to dispute this position.

Key takeaways

The matter stands remitted back to the file of the respondent authority; the petitioner is to appear before that authority and place on record its reply and documentary evidence in support of its claim, which shall be considered in accordance with law and fresh orders passed.ratio¶29
Once the sum of Rs.30,000/- is deposited, the freezing of the petitioner's bank account shall stand raised; no costs were awarded and the connected miscellaneous petition was closed.ratio¶30

Detailed headnote1 paragraphs

Madurai Bench of Madras High Court (D. Bharatha Chakravarthy, J.), W.P(MD)No.6165 of 2026, decided 06.03.2026 — GST assessment under Section 73 of the TNGST Act 2017 for assessment year 2019-20 (GSTIN 33AAAFK3140R1ZB, Reference No.ZD3308242555936) had disallowed the dealer's input tax credit solely because Form GSTR-3B was filed belatedly. Invoking Section 16(5) of the TNGST Act 2017 as inserted/amended by the Finance (No.2) Act 2024 — under which GSTR-3B filed on or before 30.11.2020 is to be treated as filed in time and the delay disregarded — and noting that the learned Additional Government Pleader did not dispute the position, the court disposed of the writ petition by setting aside the order dated 28.08.2024 conditional on the petitioner depositing Rs.30,000/-, remitting the matter to the State Tax Officer, Karur-3 Assessment Circle for fresh orders after considering the dealer's reply and documentary evidence in accordance with law, directing that the freeze on the petitioner's bank account be raised upon deposit, with no costs and the connected miscellaneous petition closed.