The Madras High Court addressed the case of M. Gnanaraj v. Assistant Commissioner (ST), Rajapalayam, involving an assessment order for the fiscal year 2024–25 under Section 73 of the TNGST Act. The petitioner contested the order, arguing that Sections 73 and 74 had been omitted as of April 1, 2024, and that only Section 74A was applicable for that fiscal year. The assessment was challenged due to the lack of a personal hearing and because the notices were only uploaded on the GST portal, which did not provide an effective opportunity for the petitioner to present their case.
The court examined whether the assessment for FY 2024–25, conducted under the now-omitted Section 73 and without a personal hearing, was valid. It concluded that the assessment order was issued without jurisdiction since Section 73 was no longer applicable. The court also noted that the absence of a personal hearing violated principles of natural justice, rendering the ex parte order invalid.
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Consequently, the court set aside the assessment order dated June 17, 2025, and instructed the petitioner to consider the order as a notice under Section 74A, allowing them four weeks to respond. The assessing authority was directed to provide a personal hearing and issue a new, reasoned order based on the merits and in accordance with the law.
Parties: M. Gnanaraj v. Assistant Commissioner (ST), Rajapalayam
Order Date: 06 January 2026
Facts –
- The petitioner challenged an assessment order dated 17.06.2025 passed under Section 73 of the TNGST Act for the assessment year 2024–25.
- All notices were uploaded only on the GST portal, and no effective opportunity of personal hearing was provided before passing the order.
- The petitioner contended that Sections 73 and 74 stood omitted with effect from 01.04.2024 and that Section 74A alone applied for FY 2024–25 onwards.
- The department fairly admitted that no personal hearing was granted prior to passing the impugned order.
Issue –
- Whether an assessment for FY 2024–25 passed under Section 73 of the GST Act, without granting personal hearing, is valid after the omission of Sections 73 and 74?
Order –
- The High Court held that the impugned assessment order was without jurisdiction, as Section 73 was no longer applicable for FY 2024–25.
- It was further held that passing an ex parte order without effective service and personal hearing violates principles of natural justice.
- The assessment order dated 17.06.2025 was set aside in entirety.
- The petitioner was directed to treat the impugned order as a notice under Section 74A and file a reply within four weeks.
- The assessing authority was directed to grant personal hearing and pass a fresh reasoned order on merits in accordance with law.
