High Court · 2025

W.P.No.22650 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 24.06.2025CORAMTHE HON'BLE Mr. JUSTICE KRISHNAN RAMASAMYW.P.No.22650 of 2025& W.M.P.Nos.25497 & 25500 of 2025 Laxmi EnterprisesRep. By Its Proprietor, Jesaram, Ground Floor, Old No.90, New No.4, Godown Street, Parrys, Chennai-600 001. ... Petitioner Vs. 1. The Deputy State Tax Office-i,Kothawalchavadi Assessment Circle, Integrated Commercial Taxes Office Complex, Room No.313, 3rd Floor, Vepery, Chennai-600 003.2. The Deputy State Tax OfficerOffice of the Assistant Commissioner ST, Kothawalchavadi Assessment Circle, Integrated Commercial Taxes Office Complex, Room No.32, Elephant Gate Bridge Road, Off Wall Tax Road, Vepery, Chennai-600 0033. The Assistant CommissionerOffice of the Assistant Commissioner ST, Kothawalchavadi Assessment Circle, Integrated Commercial Taxes Office Complex, Room No.32, Elephant Gate Bridge Road, Off Wall Tax Road, Vepery, Chennai 600 003... Respondents1/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 2025Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, to call for the records of the impugned order of the 1st respondent in TN-GST/33BGBPJ3877Q1ZV/2020-2021, dated 20.01.2025 and DRC-07 dated 20.01.2025 and consequential impugned recovery notice of the 2nd respondent in Reference No.GSTIN-33BGBPJ3877Q1ZV dated 24.04.2025 and the impugned Bank Notice of the 3rd respondent in his proceedings in RC.No.33BGBPJ3877Q1ZV/2024 dated 16.05.2025 and quash the same and consequently, direct the respondents to lift the bank attachment made in petitioners bank account i.e., A/c.No. 916010057119242, AXIS Bank, RATAN BAZAR Branch and to grant time to the petitioner to file Reply and also to produce documents to prove their claimFor Petitioner: Mr.A.Ilaya PerumalFor Respondent : Ms.P.Selvi, GAORDERThis writ petition has been filed challenging the impugned order dated 20.01.2025 passed by the 1st respondent.2/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 20252. Ms.P.Selvi, learned Government Advocate, takes notice on behalf of the respondents. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.3. The learned counsel for the petitioner would submit that in this case, all notices/communications were uploaded by the respondent in the GST common portal. Since the petitioner was not aware of the said notices, they failed to file their reply within the time. Under these circumstances, the impugned order came to be passed by the respondent without providing any opportunity of personal hearing to the petitioner. Therefore, this petition has been filed. 4. Further, he would submit that now, the petitioner is willing to pay 25% of the disputed tax amount after deducting the amount already recovered by the respondent. Hence, he requests this Court to grant an opportunity to the petitioner to present their case before the respondent by setting aside the impugned order. 3/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 20255. On the other hand, the learned Government Advocate appearing for the respondents would submit that the respondent had uploaded the notices in the GST Online Portal. But the petitioner failed to avail the said opportunity. Further, she has fairly admitted that no opportunity of personal hearing was provided to the petitioner prior to the passing of impugned order. Therefore, she requested this Court to remit the matter back to the respondent, subject to the payment of 25% of the disputed tax amount by the petitioner.6. Heard the learned counsel for the petitioner and and the learned Government Advocate for the respondents and also perused the materials available on record. 7. In the case on hand, it is evident that the show cause notice was uploaded on the GST Portal Tab. According to the petitioner, he was not aware of the issuance of the said show cause notice issued through the GST Portal and the original of the said show cause notice was not furnished to them. In such circumstances, this Court is of the view that the impugned assessment order came to be passed without affording any 4/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 2025opportunity of personal hearing to the petitioner, confirming the proposals contained in the show cause notice. 8. No doubt, sending notice by uploading in portal is a sufficient service, but, the Officer who is sending the repeated reminders, inspite of the fact that no response from the petitioner to the show cause notices etc., the Officer should have applied his/her mind and explored the possibility of sending notices by way of other modes prescribed in Section 169 of the GST Act, which are also the valid mode of service under the Act, otherwise it will not be an effective service, rather, it would only fulfilling the empty formalities. Merely passing an ex parte order by fulfilling the empty formalities will not serve any useful purpose and the same will only pave way for multiplicity of litigations, not only wasting the time of the Officer concerned, but also the precious time of the Appellate Authority/Tribunal and this Court as well. 9. Thus, when there is no response from the tax payer to the notice 5/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 2025sent through a particular mode, the Officer who is issuing notices should strictly explore the possibilities of sending notices through some other mode as prescribed in Section 169(1) of the Act, preferably by way of RPAD, which would ultimately achieve the object of the GST Act. Therefore, this Court finds that there is a lack of opportunities being provided to serve the notices/orders etc., effectively to the petitioner.10. Further, it was submitted by the learned counsel for the petitioner that the petitioner is willing to pay 25% of the disputed tax amount after deducting the amount already recovered by the respondent. In such view of the matter, this Court is inclined to set aside the impugned order dated 20.01.2025 passed by the 1st respondent. Accordingly, this Court passes the following order:- (i) The impugned order dated 20.01.2025 is set aside and the matter is remanded to the 1st respondent for fresh consideration on condition that the petitioner shall pay 25% of the disputed tax amount, after deducting the amount already recovered by the respondent, if any, within a period of four weeks from the date of receipt of a copy of this order. The setting 6/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 2025aside of the impugned order will take effect from the date of payment of the said amount.(ii) The petitioner shall file their reply/objection along with the required documents, if any, within a period of three weeks from the date of payment of amount as stated above.(iii) On filing of such reply/objection by the petitioner, the 1st respondent shall consider the same and issue a 14 days clear notice, by fixing the date of personal hearing, to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible. (iv) Considering the fact that the impugned order itself has been set aside, this Court is of the opinion that the recovery notice dated 24.04.2025 and the attachment made on the bank account of the petitioner vide notice dated 16.05.2025, cannot survive any longer and hence, it is to be lifted. As a sequel, the respondents are directed to release the attachment, and de-freeze the bank account of the petitioner, immediately upon the production of proof with regard to the payment as stated above.7/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 202511. With the above directions, this writ petition is disposed of. No costs. Consequently, the connected miscellaneous petitions are also closed.24.06.2025Speaking/Non-speaking orderIndex : Yes / NoNeutral Citation : Yes / NonsaTo1. The Deputy State Tax Office-i,Kothawalchavadi Assessment Circle, Integrated Commercial Taxes Office Complex, Room No.313, 3rd Floor, Vepery, Chennai-600 003.2. The Deputy State Tax OfficerOffice of the Assistant Commissioner ST, Kothawalchavadi Assessment Circle, Integrated Commercial Taxes Office Complex, Room No.32, Elephant Gate Bridge Road, Off Wall Tax Road, Vepery, Chennai-600 0033. The Assistant CommissionerOffice of the Assistant Commissioner ST, Kothawalchavadi Assessment Circle, Integrated Commercial Taxes Office Complex, Room No.32, Elephant Gate Bridge Road, Off Wall Tax Road, Vepery, Chennai 600 0038/9 https://www.mhc.tn.gov.in/judis W.P.No.22650 of 2025KRISHNAN RAMASAMY.J.,nsaW.P.No.22650 of 2025and W.M.P.Nos.25497 & 25500 of 2025 24.06.20259/9