High Court · 2025

WP No. 39098 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 16-10-2025CORAMTHE HONOURABLE MR JUSTICE C. SARAVANANWP No. 39098 of 2025ANDWMP NO. 43865 OF 2025,WMP NO. 43866 OF 2025,WMP NO. 43867 OF 20251. Mahesh Kumar J Doliaproprietor of TVL Wellworth enterprises, No.142, Choolai High Road, Chollai, Chennai, TamilNadu - 600008Petitioner(s)Vs1. The Deputy State Tax Officer-1Choolai Assessment Circle, Ii Floor, No.10, Palaniappa Maligai, Greams Road, Chennai-62.The Assisitant Commissioner STChoolai Assessment Circle, No.1 PAPJAM annex Building, Room Mo.106A, 1st Floor, Greams Road, Chennai - 6.3.The Branch managerPunjab National Bank, 21, raja Annamalai Road, Chennai - 28. IFSC https://www.mhc.tn.gov.in/judis WP No. 39098 of 2025Code PUNB0251100Respondent(s)PRAYERcalling for the records on the files of the 1st Respondent in FORM GST DRC - 07 with Reference No. ZD330224096415H dated 16.02.2024 along with a detailed proceeding in GSTIN. 33AAKPM0663P1ZC/ 2018-19 dated 16.02.2024 for the tax period APR 2018 - MAR 2019 and quash the sameFor Petitioner:Mr. Karventhan A PFor Respondent:Mrs. K. VasanthamalaGovernment Advocate for R1 and R2 ORDERMrs. K. Vasanthamala, learned Government Advocate takes notice for the Respondents.2. This Writ Petition is being disposed of at the time of admission after hearing the learned counsel for the Petitioner and learned Government Advocate for the Respondents following the consistent view taken by this Court under similar circumstances. https://www.mhc.tn.gov.in/judis WP No. 39098 of 20253. In this Writ Petition, the Petitioner has challenged the impugned Assessment Order dated 16.02.2024 which precedes a Show Cause Notice in GST DRC-01 dated 24.11.2023 for the Tax Period between April 2018 and March 2019. 4. The Petitioner has approached this Court long after the expiry of the limitation period prescribed both for filing an appeal against the impugned Assessment Order dated 16.02.2024 and to rectify the same under Section 161 of the respective GST enactments.5. Reading of the impugned Assessment Order dated 16.02.2024 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 24.11.2023 and therefore, the demand has been confirmed against the Petitioner.6. It is submitted by the learned counsel for the Petitioner that the Petitioner be given one chance to substantiate the case. The demand has been https://www.mhc.tn.gov.in/judis WP No. 39098 of 2025confirmed against the Petitioner merely because the Petitioner failed to respond to the Show Cause Notice in GST DRC-01 dated 24.11.2023. 7. The learned Government Advocate for the Respondents 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 Excise 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 440.8. 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. 9. It is noticed that under similar circumstances, this Court has come to the rescue of the persons like the Petitioner by quashing the impugned https://www.mhc.tn.gov.in/judis WP No. 39098 of 2025Assessment Order on terms subject to the Petitioner depositing 50% of the disputed tax. I do not find any extenuating reason to take a different stand in this case.10. Having considered the submissions made by the learned counsel for the Petitioner and the learned Government Advocate for the Respondents and having considered the consistent view taken by this Court under similar circumstances, the impugned order dated 16.02.2024 is quashed and the matter is remitted back to the Respondents to pass a fresh order de novo subject to the Petitioner depositing 50% 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. Any amount, if deposited earlier, shall be set off / adjusted towards the 50% of the pre-deposit condition as stated above. 11. The Petitioner shall file a reply to the Show Cause Notice in GST DRC-01 dated 24.11.2023 together with requisite documents to substantiate the case by treating the impugned Assessment Order dated 16.02.2024 as an addendum to the Show Cause Notice dated 24.11.2023 within a period of thirty https://www.mhc.tn.gov.in/judis WP No. 39098 of 2025(30) days from the date of receipt of a copy of this order.12. In case the Petitioner complies with the above stipulated conditions, the Respondents 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 bank account of the Petitioner shall also stand raised, if any. 13. In case the Petitioner fails to comply with any of the conditions stipulated above, the Respondents are at liberty to proceed against the Petitioner in accordance with law as if this Writ Petition was dismissed in limine today. It is for the Respondents to take steps against the Petitioner to recover the tax that has been confirmed in the impugned Assessment Order.14. Needless to state, before passing any such order, the Petitioner be heard. https://www.mhc.tn.gov.in/judis WP No. 39098 of 202515. It is made clear that the Petitioner shall co-operate with the Respondents in the de novo proceedings. 16. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.16-10-2025Index:Yes/NoSpeaking/Non-speaking orderInternet:YesNeutral Citation:Yes/Noab https://www.mhc.tn.gov.in/judis WP No. 39098 of 2025WP No. 39098 of 2025To1.The Deputy State Tax Officer-1Choolai Assessment Circle, Ii Floor, No.10, Palaniappa Maligai, Greams Road, Chennai-62.The Assisitant Commissioner STChoolai Assessment Circle, No.1 PAPJAM annex Building, Room Mo.106A, 1st Floor, Greams Road, Chennai - 6.3.The Branch managerPunjab National Bank, 21, raja Annamalai Road, Chennai - 28. IFSC Code PUNB0251100 https://www.mhc.tn.gov.in/judis WP No. 39098 of 2025C.SARAVANAN J.abWP No. 39098 of 202516-10-2025(1/2)