High Court · 2025
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Cited in this judgment
WP No. 36527 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 24-09-2025CORAMTHE HONOURABLE MR JUSTICE C. SARAVANANWP No. 36527 of 2025ANDWMP NO. 40817 OF 2025,WMP NO. 40816 OF 20251. Four Brothers Apparels Private LimitedRep Y Its Managing Director.M.Rajaram, 6b, East Colony, No. 6b, East Colony, Komarapalayam, Namakkal-638 1832. Four Brother Apparels Private Limited6B East Colony Komarapalayam NamakkalPetitioner(s)Vs1. The Deputy State Tax Officer-1Kumarapalayam, Assessment Circle, SankariRespondent(s)PRAYERcalling for the records of the respondent culminating in the Order dated https://www.mhc.tn.gov.in/judis WP No. 36527 of 202528.08.2024 issued under Reference No. ZD3308242488228 by the respondent and quashing the same, direct the respondent to consider the case afresh on meritsFor Petitioner(s):S.MurugappanM.PoojaAnugrahan. XPriyadarsini .K.T.KFor Respondent: Mr. T. N. C. KaushikAdditional Government PleaderORDERMr. T. N. C. Kaushik, learned Additional Government Pleader takes notice for the Respondent.2. This Writ Petition is being disposed of at the time of admission after hearing the learned counsel for the Petitioner and learned Additional Government Pleader for the Respondent following the consistent view taken by this Court under similar circumstances.3. In this Writ Petition, the Petitioner has challenged the impugned Assessment Order dated 28.08.2024, which was preceded by a Show Cause Notice in GST DRC-01 dated 20.05.2024 for the Tax Period between April 2019 https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025and March 2020.4. It is the specific case of the petitioner that the petitioner has also approached the appellate authority, by filing an appeal on 04.09.2025, beyond the condonable period of limitation under Section 107 of the respective GST enactments.5. Reading of the impugned Assessment Order dated 28.08.2024 indicates that the Petitioner has not participated in the assessment proceedings by filing a reply to the Show Cause Notice in GST DRC-01 dated 20.05.2024 and therefore, the demand has been confirmed against the Petitioner vide the impugned assessment order dated 28.08.2024.6. The Petitioner was also issued with Reminders on 18.06.2024, 25.06.2024 and 01.07.2024, called upon to file a reply and to appear for a personal hearing. On receiving the same, the Petitioner neither filed any reply nor appeared for the personal hearing fixed. https://www.mhc.tn.gov.in/judis WP No. 36527 of 20257. The learned counsel for the petitioner also submits that the petitioner could not file any reply to the show cause notice in GST DRC-01 dated 20.05.2024, as the employee, who was filing GST compliance, had resigned the job and therefore, the Management was unaware of the show cause notice in GST DRC-01 dated 20.05.2024 and the reminders thereafter. 8. It is submitted by the learned counsel for the Petitioner that the Petitioner be given another chance to substantiate the case. The demand has been confirmed against the Petitioner merely because the Petitioner failed to respond to the Show Cause Notice in GST DRC-01 dated 20.05.2024. 9. The learned Additional Government Pleader for the Respondent on the other hand would submit that this Writ Petition is devoid of merits and is liable to be dismissed in the light of the decisions of the Hon'ble Supreme Court in Singh Enterprises Vs. Commissioner of Central Excise, Jamshedpur and others, (2008) 3 SCC 70 and in Commissioner of Customs and Central https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025Excise Vs. Hongo India Private Limited and another, (2009) 5 SCC 791 and also in Assistant Commissioner (CT) LTU, Kakinada and others Vs. Glaxo Smith Kline Consumer Health Care Limited, 2020 SCC Online SC 440.10. That apart, it is submitted that the Petitioner has not substantiated the case with any documents and therefore, on this count also, this Writ Petition is liable to be dismissed. 11. It is noticed that under similar circumstances, this Court has come to the rescue of the persons like the Petitioner by quashing the impugned Assessment Order on terms subject to the Petitioner depositing 25% of the disputed tax. I do not find any extenuating reason to take a different stand in this case.12. Having considered the submissions made by the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent and having considered the consistent view taken by this Court in similar circumstances, I am inclined to come to a partial rescue of the Petitioner https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025by quashing the impugned Assessment Order dated 28.08.2024 and remits the case back to the Respondent to pass a fresh order de novo, subject to the Petitioner depositing 25% of the disputed tax in cash 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.13. It is also submitted by the learned counsel for the Petitioner that as against the tax demand of Rs.39,28,792/-, the petitioner has pre-deposited a sum of Rs.2,96,000/-, by debiting a sum of Rs.1,96,000/- on 19.07.2025 and by taking a demand draft for a sum of Rs.1,00,000/- on 13.08.2025. 14. Therefore, the amount deposited by the petitioner at the time of filing of appeal shall be adjusted / set off for the purpose of pre-depositing and thereafter as a pre-condition in this order, subject to verification.15. The Petitioner shall file a reply to the Show Cause Notice in GST DRC-01 dated 20.05.2024 together with requisite documents to substantiate the case by treating the impugned Assessment Order dated 28.08.2024 as an https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025addendum to the Show Cause Notice dated 20.05.2024 within a period of thirty (30) days from the date of receipt of a copy of this order.16. In case the Petitioner complies with the above stipulated conditions, the Respondent shall proceed to pass a fresh order de novo on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months thereafter. Subject to the Petitioner complying with the above stipulated conditions, the attachment of the petitioner's bank account shall also stand raised. 17. In case the Petitioner fails to comply with any of the conditions stipulated above, the Respondent is at liberty to proceed against the Petitioner in accordance with law as if this Writ Petition was dismissed in limine today. Thereafter, it is for the Respondent to take steps against the Petitioner to recover the tax that has been confirmed in the impugned Assessment Order. https://www.mhc.tn.gov.in/judis WP No. 36527 of 202518. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.19. It is made clear that the Petitioner shall co-operate with the Respondent in the de novo proceedings. 20. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.24-09-2025Index:Yes/NoSpeaking/Non-speaking orderInternet:YesNeutral Citation:Yes/Noab https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025WP No. 36527 of 2025To1.The Deputy State Tax Officer-1Kumarapalayam, Assessment Circle, Sankari https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025C.SARAVANAN J.abWP No. 36527 of 2025AND WMP NO. 40817 OF 2025,WMP NO. 40816 OF 202524-09-2025
WP No. 36527 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 24-09-2025CORAMTHE HONOURABLE MR JUSTICE C. SARAVANANWP No. 36527 of 2025ANDWMP NO. 40817 OF 2025,WMP NO. 40816 OF 20251. Four Brothers Apparels Private LimitedRep Y Its Managing Director.M.Rajaram, 6b, East Colony, No. 6b, East Colony, Komarapalayam, Namakkal-638 1832. Four Brother Apparels Private Limited6B East Colony Komarapalayam NamakkalPetitioner(s)Vs1. The Deputy State Tax Officer-1Kumarapalayam, Assessment Circle, SankariRespondent(s)PRAYERcalling for the records of the respondent culminating in the Order dated https://www.mhc.tn.gov.in/judis WP No. 36527 of 202528.08.2024 issued under Reference No. ZD3308242488228 by the respondent and quashing the same, direct the respondent to consider the case afresh on meritsFor Petitioner(s):S.MurugappanM.PoojaAnugrahan. XPriyadarsini .K.T.KFor Respondent: Mr. T. N. C. KaushikAdditional Government PleaderORDERMr. T. N. C. Kaushik, learned Additional Government Pleader takes notice for the Respondent.2. This Writ Petition is being disposed of at the time of admission after hearing the learned counsel for the Petitioner and learned Additional Government Pleader for the Respondent following the consistent view taken by this Court under similar circumstances.3. In this Writ Petition, the Petitioner has challenged the impugned Assessment Order dated 28.08.2024, which was preceded by a Show Cause Notice in GST DRC-01 dated 20.05.2024 for the Tax Period between April 2019 https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025and March 2020.4. It is the specific case of the petitioner that the petitioner has also approached the appellate authority, by filing an appeal on 04.09.2025, beyond the condonable period of limitation under Section 107 of the respective GST enactments.5. Reading of the impugned Assessment Order dated 28.08.2024 indicates that the Petitioner has not participated in the assessment proceedings by filing a reply to the Show Cause Notice in GST DRC-01 dated 20.05.2024 and therefore, the demand has been confirmed against the Petitioner vide the impugned assessment order dated 28.08.2024.6. The Petitioner was also issued with Reminders on 18.06.2024, 25.06.2024 and 01.07.2024, called upon to file a reply and to appear for a personal hearing. On receiving the same, the Petitioner neither filed any reply nor appeared for the personal hearing fixed. https://www.mhc.tn.gov.in/judis WP No. 36527 of 20257. The learned counsel for the petitioner also submits that the petitioner could not file any reply to the show cause notice in GST DRC-01 dated 20.05.2024, as the employee, who was filing GST compliance, had resigned the job and therefore, the Management was unaware of the show cause notice in GST DRC-01 dated 20.05.2024 and the reminders thereafter. 8. It is submitted by the learned counsel for the Petitioner that the Petitioner be given another chance to substantiate the case. The demand has been confirmed against the Petitioner merely because the Petitioner failed to respond to the Show Cause Notice in GST DRC-01 dated 20.05.2024. 9. The learned Additional Government Pleader for the Respondent on the other hand would submit that this Writ Petition is devoid of merits and is liable to be dismissed in the light of the decisions of the Hon'ble Supreme Court in Singh Enterprises Vs. Commissioner of Central Excise, Jamshedpur and others, (2008) 3 SCC 70 and in Commissioner of Customs and Central https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025Excise Vs. Hongo India Private Limited and another, (2009) 5 SCC 791 and also in Assistant Commissioner (CT) LTU, Kakinada and others Vs. Glaxo Smith Kline Consumer Health Care Limited, 2020 SCC Online SC 440.10. That apart, it is submitted that the Petitioner has not substantiated the case with any documents and therefore, on this count also, this Writ Petition is liable to be dismissed. 11. It is noticed that under similar circumstances, this Court has come to the rescue of the persons like the Petitioner by quashing the impugned Assessment Order on terms subject to the Petitioner depositing 25% of the disputed tax. I do not find any extenuating reason to take a different stand in this case.12. Having considered the submissions made by the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent and having considered the consistent view taken by this Court in similar circumstances, I am inclined to come to a partial rescue of the Petitioner https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025by quashing the impugned Assessment Order dated 28.08.2024 and remits the case back to the Respondent to pass a fresh order de novo, subject to the Petitioner depositing 25% of the disputed tax in cash 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.13. It is also submitted by the learned counsel for the Petitioner that as against the tax demand of Rs.39,28,792/-, the petitioner has pre-deposited a sum of Rs.2,96,000/-, by debiting a sum of Rs.1,96,000/- on 19.07.2025 and by taking a demand draft for a sum of Rs.1,00,000/- on 13.08.2025. 14. Therefore, the amount deposited by the petitioner at the time of filing of appeal shall be adjusted / set off for the purpose of pre-depositing and thereafter as a pre-condition in this order, subject to verification.15. The Petitioner shall file a reply to the Show Cause Notice in GST DRC-01 dated 20.05.2024 together with requisite documents to substantiate the case by treating the impugned Assessment Order dated 28.08.2024 as an https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025addendum to the Show Cause Notice dated 20.05.2024 within a period of thirty (30) days from the date of receipt of a copy of this order.16. In case the Petitioner complies with the above stipulated conditions, the Respondent shall proceed to pass a fresh order de novo on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months thereafter. Subject to the Petitioner complying with the above stipulated conditions, the attachment of the petitioner's bank account shall also stand raised. 17. In case the Petitioner fails to comply with any of the conditions stipulated above, the Respondent is at liberty to proceed against the Petitioner in accordance with law as if this Writ Petition was dismissed in limine today. Thereafter, it is for the Respondent to take steps against the Petitioner to recover the tax that has been confirmed in the impugned Assessment Order. https://www.mhc.tn.gov.in/judis WP No. 36527 of 202518. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.19. It is made clear that the Petitioner shall co-operate with the Respondent in the de novo proceedings. 20. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.24-09-2025Index:Yes/NoSpeaking/Non-speaking orderInternet:YesNeutral Citation:Yes/Noab https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025WP No. 36527 of 2025To1.The Deputy State Tax Officer-1Kumarapalayam, Assessment Circle, Sankari https://www.mhc.tn.gov.in/judis WP No. 36527 of 2025C.SARAVANAN J.abWP No. 36527 of 2025AND WMP NO. 40817 OF 2025,WMP NO. 40816 OF 202524-09-2025