Order dated 14 July 2025 
Parties: Tvl. J K S Construction v. State Tax Officer, Nagercoil-1 Assessment Circle

Facts -

• The petitioner, a registered contractor, was assessed for FY 2020–21 under Section 73 of the TNGST Act based on an error in its annual return GSTR-9, where the taxable value was mistakenly reported as ₹6.27 crore instead of ₹62.76 lakh, resulting in a higher demand. A show cause notice in DRC-01 dated 08.11.2024 was issued. 
• The petitioner did not file any reply or attend personal hearings. An assessment order dated 15.02.2025 confirmed the proposed demand. The petitioner directly approached the High Court, seeking quashing of the order as cryptic and non-speaking.

Issue -

• Whether an assessment order based on an erroneous GSTR-9 entry, without the petitioner filing a reply to SCN, can be quashed and remanded for fresh adjudication?

Order -

• The single bench of the Hon’ble High court noted that the petitioner is making these averments for the first time before this Court. The petitioner did not respond to the notices of personal hearing. The petitioner has also not replied to the notice in Form GST DRC 01, dated 08.11.2024.
• Although the petitioner may have a case for rectification by filing an application under Section 161 of the respective Goods and Services Tax Act, the Court find the case remit back to the respondents to pass fresh order.
• Accordingly, the impugned order dated 15.02.2025 stands quashed, subject to the petitioner depositing the admitted tax liability of Rs.2,00,000/- within a period of 30 days from the date of receipt of a copy of this order. 
• The petitioner directed to file a reply to the show cause notice within such time.