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W.P.No.32982 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 02.09.2025Coram:THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQW.P.No.32982 of 2025and W.M.P.Nos.36995 & 36996 of 2025Shibu Kumar M/A 47 YearsProp. M/s.Royal Constructions,57/15, Shiva Moorthy Complex,Shop No.6, First Floor, M.T.H.Road,Padi, Chennai – 600 050.GSTIN/ID-33CLDPS7263M1ZK....PetitionerVersus1.State Tax Officer, Paid Assessment Circle, Integrated Commercial Taxes &Registration Department Building, Room No.426, 4th Floor, Nandanam, Chennai – 600 035.2.HDFC Bank, Rep. by the Bank Manager, Anna Nagar West Branch, No.1513/E1, East Main Road, Anna Nagar West, Chennai – 600 101. ...Respondents Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorarified mandamus to call for the records on the file of the 1st respondent in connection with impugned 1/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025Assessment Order vide Ref.No.ZD330125273724H dated 29.01.2025 and quash the same as illegal, arbitrary and consequently, directing the 1st respondent to redo the assessment proceedings for the 2020-21 after giving full and fair opportunity to the petitioner as well as revocation of the blocking of access to funds from the petitioner's bank account (HDFC Bank Current Account No.15962020000521 and HDFC Bank Savings Account No.15961530002445) which is with the second respondent.For Petitioner:Mr.A.GaneshFor Respondent – 1 :Mr.V.Prashanth Kiran,Government Advocate (Tax)For Respondent – 2 :Mr.C.MohanandMs.A.Rexy Josephine Maryfor M/s.King & PartridgeORDERMr.V.Prashanth Kiran, learned Government Advocate (Tax) takes notice for 1st respondent and Mr.C.Mohan, learned counsel takes notice for 2nd respondent.2. The relief sought in this writ petition is to quash the Assessment Order dated 29.01.2025 bearing Ref.No.ZD330125273724H passed by 1st respondent and consequently, to direct the 1st respondent to redo the assessment proceedings for the year 2020-21, after giving an opportunity to the petitioner and to remove the blocking of access to funds from the 2/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025petitioner's Bank Accounts viz., Current Account bearing No.15962020000521 and Savings Account bearing No.15961530002445 with 2nd respondent Bank.3. The learned counsel for the petitioner submitted that the petitioner is engaged in the business of construction works for various companies under the trade name, M/s.Royal Constructions. On scrutinization of the returns filed by the petitioner for the Financial Year 2020-21, following discrepancies were inter-alia noticed:(i) Reconciliation of GSTR-01 with GSTR-3B; and(ii) GSTR-1 Late FeeHence, 1st respondent issued a Show Cause Notice in Form GST DRC-01 dated 25.11.2024, proposing a liability totalling at Rs.18,46,354/- and calling upon the petitioner to file his Reply by 24.12.2024 and appear for personal hearing on 18.12.2024. However, the petitioner neither replied to the Show Cause Notice nor appeared for personal hearings and thus, 1st respondent has passed the Assessment Order in Form GST DRC-07 dated 29.01.2025, confirming the demands proposed in the Show Cause Notice and directing the petitioner to pay the demand of Rs.18,46,354/- comprising 3/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025tax, interest, penalty and late fee. Subsequently, the respondent-Department issued a Bank Attachment Notice in Form GST DRC-13 dated 27.05.2025 to 2nd respondent (petitioner's Banker) seeking to recover a sum of Rs.33,03,690/- from the petitioner's Bank Accounts towards the tax dues arising out of the impugned order of assessment, pursuant to which, petitioner's Bank Accounts viz., Current Account bearing No.15962020000521 and Savings Account bearing No.15961530002445 were freezed by 2nd respondent Bank. 3.1. It is submitted by the learned counsel for the petitioner that both the Show Cause Notice and the impugned Assessment Order had not been served to the petitioner either by tender or by way of RPAD, instead, the same had been uploaded in the GST portal and thus, the petitioner was unaware of the proceedings initiated by 1st respondent and was also unable to participate in the adjudication proceedings. It is also submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, the petitioner would be able to explain the alleged discrepancies.4/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 20253.2. The learned counsel for the petitioner has placed reliance on the order passed by this Court in the case of M/s.K.Balakrishnan, Balu Cables Vs. O/o. The Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024, to submit that in similar circumstances, this Court has remanded the matter back to the respondent, subject to the payment of 25% of the disputed tax by the petitioner therein. 3.3. The learned counsel for the petitioner further submitted that the petitioner is ready and willing to pay 25% of the disputed tax amount and that on such payment, attachment made in petitioner's Bank Accounts may be ordered to be lifted and one final opportunity may be granted to the petitioner to put forth his objections to the proposal before the Adjudicating Authority, to which, the learned Government Advocate (Tax) appearing for 1st respondent does not have any serious objection.4. By consent of the learned counsel on both sides, this Writ Petition stands disposed of on the following terms:(a) The impugned Assessment Order dated 29.01.2025 passed by 1st respondent is quashed.5/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025(b) The petitioner shall deposit 25% of the disputed tax as agreed by the learned counsel for the petitioner, within a period of four weeks from the date of uploading of web copy of this order without waiting for the receipt of a certified copy of this order.(c) If any amount has been recovered or paid out of the disputed tax, including by way of pre-deposit in Appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The Assessing Authority shall intimate the balance amount out of 25% of disputed tax to be paid, if any, within a period of one week from the date of uploading of web copy of this order without waiting for the receipt of a certified copy of this order. The petitioner shall deposit such remaining sum, within a period of three weeks from such intimation.(d) Failure to comply with the above condition viz., payment of 25% of disputed tax within a period of four weeks from the date of uploading of web copy of this order shall result in restoration of the impugned order.(e) If there is any recovery by way of attachment of Bank Account or Garnishee proceedings, the same shall be lifted/withdrawn on complying with the above condition that the petitioner shall pay 25% of the disputed 6/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025tax, within a period of four weeks from the date of uploading of web copy of this order.(f) On complying with the above condition, the impugned order of assessment shall be treated as Show Cause Notice and the petitioner shall submit his objections along with supporting documents/material, within a period of four weeks from the date of compliance of the conditions relating to deposit in Clauses (b) and (c). If any such objections are filed, 1st respondent shall consider the same and pass orders, in accordance with law, after affording a reasonable opportunity of hearing to the petitioner. (g) It is made clear that if the above conditions viz., payment of 25% of disputed tax is not complied or objections are not filed within the stipulated time as stated above, the impugned order of assessment shall stand restored.5. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.02.09.2025mrr Index : Yes/NoSpeaking Order (or) Non-Speaking Order7/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025To1.State Tax Officer, Paid Assessment Circle, Integrated Commercial Taxes &Registration Department Building, Room No.426, 4th Floor, Nandanam, Chennai – 600 035.2.The Bank Manager, HDFC Bank, Anna Nagar West Branch, No.1513/E1, East Main Road, Anna Nagar West, Chennai – 600 101.8/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025MOHAMMED SHAFFIQ, J.mrrW.P.No.32982 of 202502.09.20259/9
W.P.No.32982 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 02.09.2025Coram:THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQW.P.No.32982 of 2025and W.M.P.Nos.36995 & 36996 of 2025Shibu Kumar M/A 47 YearsProp. M/s.Royal Constructions,57/15, Shiva Moorthy Complex,Shop No.6, First Floor, M.T.H.Road,Padi, Chennai – 600 050.GSTIN/ID-33CLDPS7263M1ZK....PetitionerVersus1.State Tax Officer, Paid Assessment Circle, Integrated Commercial Taxes &Registration Department Building, Room No.426, 4th Floor, Nandanam, Chennai – 600 035.2.HDFC Bank, Rep. by the Bank Manager, Anna Nagar West Branch, No.1513/E1, East Main Road, Anna Nagar West, Chennai – 600 101. ...Respondents Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorarified mandamus to call for the records on the file of the 1st respondent in connection with impugned 1/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025Assessment Order vide Ref.No.ZD330125273724H dated 29.01.2025 and quash the same as illegal, arbitrary and consequently, directing the 1st respondent to redo the assessment proceedings for the 2020-21 after giving full and fair opportunity to the petitioner as well as revocation of the blocking of access to funds from the petitioner's bank account (HDFC Bank Current Account No.15962020000521 and HDFC Bank Savings Account No.15961530002445) which is with the second respondent.For Petitioner:Mr.A.GaneshFor Respondent – 1 :Mr.V.Prashanth Kiran,Government Advocate (Tax)For Respondent – 2 :Mr.C.MohanandMs.A.Rexy Josephine Maryfor M/s.King & PartridgeORDERMr.V.Prashanth Kiran, learned Government Advocate (Tax) takes notice for 1st respondent and Mr.C.Mohan, learned counsel takes notice for 2nd respondent.2. The relief sought in this writ petition is to quash the Assessment Order dated 29.01.2025 bearing Ref.No.ZD330125273724H passed by 1st respondent and consequently, to direct the 1st respondent to redo the assessment proceedings for the year 2020-21, after giving an opportunity to the petitioner and to remove the blocking of access to funds from the 2/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025petitioner's Bank Accounts viz., Current Account bearing No.15962020000521 and Savings Account bearing No.15961530002445 with 2nd respondent Bank.3. The learned counsel for the petitioner submitted that the petitioner is engaged in the business of construction works for various companies under the trade name, M/s.Royal Constructions. On scrutinization of the returns filed by the petitioner for the Financial Year 2020-21, following discrepancies were inter-alia noticed:(i) Reconciliation of GSTR-01 with GSTR-3B; and(ii) GSTR-1 Late FeeHence, 1st respondent issued a Show Cause Notice in Form GST DRC-01 dated 25.11.2024, proposing a liability totalling at Rs.18,46,354/- and calling upon the petitioner to file his Reply by 24.12.2024 and appear for personal hearing on 18.12.2024. However, the petitioner neither replied to the Show Cause Notice nor appeared for personal hearings and thus, 1st respondent has passed the Assessment Order in Form GST DRC-07 dated 29.01.2025, confirming the demands proposed in the Show Cause Notice and directing the petitioner to pay the demand of Rs.18,46,354/- comprising 3/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025tax, interest, penalty and late fee. Subsequently, the respondent-Department issued a Bank Attachment Notice in Form GST DRC-13 dated 27.05.2025 to 2nd respondent (petitioner's Banker) seeking to recover a sum of Rs.33,03,690/- from the petitioner's Bank Accounts towards the tax dues arising out of the impugned order of assessment, pursuant to which, petitioner's Bank Accounts viz., Current Account bearing No.15962020000521 and Savings Account bearing No.15961530002445 were freezed by 2nd respondent Bank. 3.1. It is submitted by the learned counsel for the petitioner that both the Show Cause Notice and the impugned Assessment Order had not been served to the petitioner either by tender or by way of RPAD, instead, the same had been uploaded in the GST portal and thus, the petitioner was unaware of the proceedings initiated by 1st respondent and was also unable to participate in the adjudication proceedings. It is also submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, the petitioner would be able to explain the alleged discrepancies.4/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 20253.2. The learned counsel for the petitioner has placed reliance on the order passed by this Court in the case of M/s.K.Balakrishnan, Balu Cables Vs. O/o. The Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024, to submit that in similar circumstances, this Court has remanded the matter back to the respondent, subject to the payment of 25% of the disputed tax by the petitioner therein. 3.3. The learned counsel for the petitioner further submitted that the petitioner is ready and willing to pay 25% of the disputed tax amount and that on such payment, attachment made in petitioner's Bank Accounts may be ordered to be lifted and one final opportunity may be granted to the petitioner to put forth his objections to the proposal before the Adjudicating Authority, to which, the learned Government Advocate (Tax) appearing for 1st respondent does not have any serious objection.4. By consent of the learned counsel on both sides, this Writ Petition stands disposed of on the following terms:(a) The impugned Assessment Order dated 29.01.2025 passed by 1st respondent is quashed.5/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025(b) The petitioner shall deposit 25% of the disputed tax as agreed by the learned counsel for the petitioner, within a period of four weeks from the date of uploading of web copy of this order without waiting for the receipt of a certified copy of this order.(c) If any amount has been recovered or paid out of the disputed tax, including by way of pre-deposit in Appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The Assessing Authority shall intimate the balance amount out of 25% of disputed tax to be paid, if any, within a period of one week from the date of uploading of web copy of this order without waiting for the receipt of a certified copy of this order. The petitioner shall deposit such remaining sum, within a period of three weeks from such intimation.(d) Failure to comply with the above condition viz., payment of 25% of disputed tax within a period of four weeks from the date of uploading of web copy of this order shall result in restoration of the impugned order.(e) If there is any recovery by way of attachment of Bank Account or Garnishee proceedings, the same shall be lifted/withdrawn on complying with the above condition that the petitioner shall pay 25% of the disputed 6/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025tax, within a period of four weeks from the date of uploading of web copy of this order.(f) On complying with the above condition, the impugned order of assessment shall be treated as Show Cause Notice and the petitioner shall submit his objections along with supporting documents/material, within a period of four weeks from the date of compliance of the conditions relating to deposit in Clauses (b) and (c). If any such objections are filed, 1st respondent shall consider the same and pass orders, in accordance with law, after affording a reasonable opportunity of hearing to the petitioner. (g) It is made clear that if the above conditions viz., payment of 25% of disputed tax is not complied or objections are not filed within the stipulated time as stated above, the impugned order of assessment shall stand restored.5. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.02.09.2025mrr Index : Yes/NoSpeaking Order (or) Non-Speaking Order7/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025To1.State Tax Officer, Paid Assessment Circle, Integrated Commercial Taxes &Registration Department Building, Room No.426, 4th Floor, Nandanam, Chennai – 600 035.2.The Bank Manager, HDFC Bank, Anna Nagar West Branch, No.1513/E1, East Main Road, Anna Nagar West, Chennai – 600 101.8/9 https://www.mhc.tn.gov.in/judis W.P.No.32982 of 2025MOHAMMED SHAFFIQ, J.mrrW.P.No.32982 of 202502.09.20259/9