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WP No. 33861 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 11-09-2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQWP No. 33861 of 2025andWMP.Nos. 37997 & 37998 of 20251. A R Traders CNC(Rep by its Partner), Mr.Thirumangalam Narasimhan Veeraragavan),1, 74/727, Murugaiyan, MTH Road, Mannurpet, Chennai, Thiruvallur, Tamil Nadu - 600 050.Petitioner(s)Vs1. The Assistant Commissioner (ST)Korattur Assessment Circle, Room No.330, 3rd Floor, Integrated Commercial Taxes and Registration Department (South Tower), Nandanam, Chennai-600 035.2.The Deputy Commissioner (CT)(GST Appeal), Chennai II, 2nd Floor, PAPJM Building, 1, Greams Road, Chennai 600 006.Respondent(s) https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025PRAYER:- Writ Petition filed under Article 226 of the Constitution of India, seeking issuance of writ of certiorarified mandamus, calling for the records on the files of the 1 Respondent herein in his proceeding in FORM GST DRC 07 with Reference No. ZD330225269867Z dated 26.02.2025 along with detailed order in GSTIN/33AASFA7758F1Z4/2020-21 dated 26.02.2025 for the tax period April 2022 March 2023 and quash the same.For Petitioner(s):Mr.B.Syed Abdul WakeelFor Respondents:Ms.P.SelviGovernment Advocate ORDERThe present writ petition is filed challenging the impugned order as well as the detailed order dated 26.02.2025 relating to the assessment year 2020-21.2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of trading in General machinery, Automobile components, Engineering components etc., and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2020-21, the https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025petitioner filed its returns and paid the appropriate taxes. However, on verification of the returns, a discrepancy was found that there is mismatch between GSTR-2A and GSTR-3B. 3. Pursuant thereto, a notice in DRC-01 was issued on 12.02.2024 with personal hearing on 19.02.2024, followed by a reminder notice dated 05.07.2024. However, the petitioner had not responded to above notice, the impugned orders were thus passed confirming the proposal. It is submitted by the learned counsel for the petitioner that neither the show cause notices nor the impugned order of assessment has been served on the petitioner by tender or sending it by RPAD, instead it had been uploaded under “additional notices and orders” tab on the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancies. https://www.mhc.tn.gov.in/judis WP No. 33861 of 20254. The learned counsel for the petitioner would place reliance upon the recent judgment of 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 this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.5. It was further submitted that the petitioner that the entire tax, interest and penalty has already been paid. He would further submitted that the appeal filed as against the impugned assessment order was rejected on the ground of the delay. The learned counsel for the petitioner undertakes to withdraw the appeal filed against the impugned assessment order. He would submit that the petitioner is ready and willing to pay 25% of the disputed tax and that they may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal. It was submitted that pursuant to the impugned orders, recovery proceedings were initiated and bank accounts have been https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025attached and requests that the same may be lifted on payment of 25% of disputed taxes, to which the learned Government Advocate appearing for the respondent does not have any serious objection. 6. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned assessment order as well as the detailed summary order dated 26.02.2025 are set aside.b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of uploading of web copy without waiting for the receipt of the certified copy.c) If any amount has been recovered or paid out of the disputed taxes, 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 then intimate the balance amount out of 25% of disputed taxes to be paid, if any, within a period of one week from the date of uploading of web https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025copy without waiting for the receipt of the certified copy. 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 taxes within the stipulated period i.e., four weeks from the date of uploading of web copy of this order, shall result in restoration of the impugned orders.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 viz., payment of 25 % of the disputed taxes. f) On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of compliance of the conditions relating to deposit in Clause (b) and (c) supra, along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025made clear that if the above conditions viz., payment of 25% of disputed taxes is not complied or objections are not filed within the stipulated time as stated above the impugned order of assessment shall stand restored.7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 11-09-2025kknIndex:Yes/NoSpeaking/Non-speaking orderInternet:YesNeutral Citation:Yes/No https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025To1.The Assistant Commissioner (ST)Korattur Assessment Circle, Room No.330, 3rd Floor, Integrated Commercial Taxes and Registration Department (South Tower), Nandanam, Chennai-600 0352.The Deputy Commissioner (CT)GST Appeal Chennai II, 2nd Floor, PAPJM Building, 1, Greams Road, Chennai 600 006. https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025MOHAMMED SHAFFIQ J.KKNWP No. 33861 of 2025 11-09-2025
WP No. 33861 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 11-09-2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQWP No. 33861 of 2025andWMP.Nos. 37997 & 37998 of 20251. A R Traders CNC(Rep by its Partner), Mr.Thirumangalam Narasimhan Veeraragavan),1, 74/727, Murugaiyan, MTH Road, Mannurpet, Chennai, Thiruvallur, Tamil Nadu - 600 050.Petitioner(s)Vs1. The Assistant Commissioner (ST)Korattur Assessment Circle, Room No.330, 3rd Floor, Integrated Commercial Taxes and Registration Department (South Tower), Nandanam, Chennai-600 035.2.The Deputy Commissioner (CT)(GST Appeal), Chennai II, 2nd Floor, PAPJM Building, 1, Greams Road, Chennai 600 006.Respondent(s) https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025PRAYER:- Writ Petition filed under Article 226 of the Constitution of India, seeking issuance of writ of certiorarified mandamus, calling for the records on the files of the 1 Respondent herein in his proceeding in FORM GST DRC 07 with Reference No. ZD330225269867Z dated 26.02.2025 along with detailed order in GSTIN/33AASFA7758F1Z4/2020-21 dated 26.02.2025 for the tax period April 2022 March 2023 and quash the same.For Petitioner(s):Mr.B.Syed Abdul WakeelFor Respondents:Ms.P.SelviGovernment Advocate ORDERThe present writ petition is filed challenging the impugned order as well as the detailed order dated 26.02.2025 relating to the assessment year 2020-21.2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of trading in General machinery, Automobile components, Engineering components etc., and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2020-21, the https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025petitioner filed its returns and paid the appropriate taxes. However, on verification of the returns, a discrepancy was found that there is mismatch between GSTR-2A and GSTR-3B. 3. Pursuant thereto, a notice in DRC-01 was issued on 12.02.2024 with personal hearing on 19.02.2024, followed by a reminder notice dated 05.07.2024. However, the petitioner had not responded to above notice, the impugned orders were thus passed confirming the proposal. It is submitted by the learned counsel for the petitioner that neither the show cause notices nor the impugned order of assessment has been served on the petitioner by tender or sending it by RPAD, instead it had been uploaded under “additional notices and orders” tab on the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancies. https://www.mhc.tn.gov.in/judis WP No. 33861 of 20254. The learned counsel for the petitioner would place reliance upon the recent judgment of 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 this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.5. It was further submitted that the petitioner that the entire tax, interest and penalty has already been paid. He would further submitted that the appeal filed as against the impugned assessment order was rejected on the ground of the delay. The learned counsel for the petitioner undertakes to withdraw the appeal filed against the impugned assessment order. He would submit that the petitioner is ready and willing to pay 25% of the disputed tax and that they may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal. It was submitted that pursuant to the impugned orders, recovery proceedings were initiated and bank accounts have been https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025attached and requests that the same may be lifted on payment of 25% of disputed taxes, to which the learned Government Advocate appearing for the respondent does not have any serious objection. 6. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned assessment order as well as the detailed summary order dated 26.02.2025 are set aside.b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of uploading of web copy without waiting for the receipt of the certified copy.c) If any amount has been recovered or paid out of the disputed taxes, 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 then intimate the balance amount out of 25% of disputed taxes to be paid, if any, within a period of one week from the date of uploading of web https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025copy without waiting for the receipt of the certified copy. 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 taxes within the stipulated period i.e., four weeks from the date of uploading of web copy of this order, shall result in restoration of the impugned orders.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 viz., payment of 25 % of the disputed taxes. f) On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of compliance of the conditions relating to deposit in Clause (b) and (c) supra, along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025made clear that if the above conditions viz., payment of 25% of disputed taxes is not complied or objections are not filed within the stipulated time as stated above the impugned order of assessment shall stand restored.7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 11-09-2025kknIndex:Yes/NoSpeaking/Non-speaking orderInternet:YesNeutral Citation:Yes/No https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025To1.The Assistant Commissioner (ST)Korattur Assessment Circle, Room No.330, 3rd Floor, Integrated Commercial Taxes and Registration Department (South Tower), Nandanam, Chennai-600 0352.The Deputy Commissioner (CT)GST Appeal Chennai II, 2nd Floor, PAPJM Building, 1, Greams Road, Chennai 600 006. https://www.mhc.tn.gov.in/judis WP No. 33861 of 2025MOHAMMED SHAFFIQ J.KKNWP No. 33861 of 2025 11-09-2025