GST Exemption on Minimum Quantity of Lubricant Oils with Petroleum Products: Madras HC directs reconsideration of Claim [Read Order]

The Madurai Bench of the Madras High Court directed reconsideration of the Goods and Services Tax (GST) exemption claim as there was only a minimum quantity of lubricant oils with petroleum products.

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The counsel for the petitioner, I. Romeo Roy Alfred, claims that they are traders of exempt goods (petroleum products) and only a certain minimal quantity of products such as rubber, lubricant, oils come within the GST regime.

The Additional Government Pleader, R. Suresh Kumar, submitted that it is duty of the assessee to prove before the Authority that the goods in question are exempted and in the absence of any documentary evidence in support of the claim, the assessment order under Section 73 of theTNGST Act dated 26.12.2025 had been passed.

It is to be noted that the petitioner’s total turnover was reported as an exempted turnover, but was not accepted as the order was passed.

Madras High Court was of the view that an opportunity can be granted to the petitioner even though the petitioner had filed a reply to the show cause notice. The High Court agreed with the counsel that only minimal and negligible amount comes within the lubricant oil etc. that is within the GST regime. The bench observed that the order was passed only because no supporting documents were filed.

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Justice D. Bharatha Chakravarthy gave two weeks to the petitioner to file all documents in support of their claim of exemption, along with their additional reply. Thereafter, Madras High Court finally directed the Deputy Commissioner to decide the matter afresh. The order was set aside accordingly.

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