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CDJ 2026 MHC 634 print Preview print Next print
Court : High Court of Judicature at Madras
Case No : W.P. No. 1384 of 2026 & W.M.P. No. 1540 of 2026
Judges: THE HONOURABLE MR. JUSTICE C. SARAVANAN
Parties : Sri Omsakthi Agencies, Represented by its Partner C.Karthikeyan, Coimbatore Versus The Deputy State Tax Officer – II (FAC), Peelamedu South Circle, Coimbatore
Appearing Advocates : For the Petitioner: N.S. Suganthan, Advocate. For the Respondent: T.N.C. Kaushik, Additional Government Pleader.
Date of Judgment : 21-01-2026
Head Note :-
Constitution of India - Article 226 -
Summary :-
1. Statutes / Acts / Rules Mentioned:
- Article 226 of the Constitution of India
- Section 161 of the respective GST enactments
- Section 107 of the respective GST enactments, 2017

2. Catch Words:
- limitation
- pre‑deposit
- remand
- quash
- natural justice
- appeal
- show cause notice
- bank attachment

3. Summary:
The writ petition under Article 226 challenges a GST assessment order dated 31.08.2024, alleging procedural lapses and seeking its quash. The petitioner had ignored a show‑cause notice and later filed a rectification application under Section 161, which was rejected. The court notes that the limitation period for an appeal under Section 107 has expired. With the petitioner’s willingness to pre‑deposit 50% of the disputed tax, the court remits the matter to the revenue authority to pass a fresh order, subject to the deposit and compliance with stipulated conditions. Bank attachment is ordered to be lifted upon compliance. The petition is disposed with these observations and no costs.

4. Conclusion:
Petition Dismissed
Judgment :-

(Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the entire records pertaining to the Impugned Order along with the Summary dated 31.08.2024 passed by the Respondent in GSTIN:33ACRFS3015L1ZW/2019-20 through Reference No:ZD330824300861L quash the same and consequently reopen the entire proceedings and adjudicate the same by adhering to the Principles of Natural Justice.)

1. Mr.T.N.C.Kaushik, learned Additional Government Pleader takes notice for the Respondent.

2. This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent.

3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 31.08.2024, which was preceded by a Show Cause Notice in GST DRC-01 dated 29.05.2024 wherein the Petitioner was called upon to appear for personal hearing. However, the Petitioner had not taken advantage of the same and thus, suffered the impugned Order dated 31.08.2024.

4. The Petitioner filed an application for rectification of the impugned Assessment order dated 31.08.2024 under Section 161 of the respective GST enactments on 28.11.2024 which came to be rejected by an order dated 03.02.2025.

5. It is noticed that the limitation for filing an appeal under Section 107 of the respective GST enactments, 2017 against the impugned Order has already expired. The present Writ Petition has been filed only on 21.11.2025.

6. At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 50% of the disputed tax as a condition for denovo adjudication.

7. Under similar circumstances, Orders have been quashed and cases have been remitted back to the Respondent to pass a fresh order on terms subject to such Assessee depositing 25% to 100% of the disputed tax depending upon the length of delay in approaching the Court. I do not find any reason to take a different view in this case.

8. Therefore, to balance the interest of both parties viz., the Assessee and the Revenue, the case is remitted back to the Respondent to pass a fresh order on merits subject to the Petitioner depositing 50% of the disputed tax in cash or from the Petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order.

9. Needless to state, any amount recovered from the Petitioner / paid by the Petitioner towards the tax liability confirmed vide impugned order, shall be adjusted towards the aforesaid pre-deposit of 50% as ordered above. This will be however subject to verification by the Respondent.

10. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 29.05.2024 together with requisite documents to substantiate the case by treating the impugned Order dated 31.08.2024 as an addendum to the Show Cause Notice dated 29.05.2024.

11. In case the Petitioner complies with the above stipulations, the Respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such reply/pre-deposit. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner shall also stand automatically vacated.

12. It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 50% of the disputed tax as ordered above and the Petitioner not being in arrears of any other amount for any other tax period barring the amount demanded under the impugned Order.

13. In case the Petitioner fails to comply with any of the stipulations, the Respondent is at liberty to proceed against the Petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine today.

14. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.

15. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petition is closed.
 
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