Tvl.Sri Balaji Tractors Vs Commercial Tax Officer (ST) (Madras High Court)
The writ petition challenged an order dated 24.11.2023 confirming interest liability for belated tax payment pursuant to a show cause notice. The petitioner had earlier sought rectification of the assessment on 05.01.2024, seeking re-credit of excess ITC reversed twice—once on 30.12.2022 and again on 28.07.2023. This rectification application was rejected on 23.01.2025 due to the absence of supporting documents. An appeal against the rejection was filed on 03.05.2025 and acknowledged on 09.05.2025, but no final order had been passed by the Appellate Authority. The writ petition was filed only after recovery proceedings were initiated and the petitioner’s bank account was attached. The respondent argued that the original order had merged with the rectification order and could no longer be challenged. The Court observed that the writ petition was liable to be dismissed but, considering the bank account attachment, directed the petitioner to deposit 20% of the disputed amount in cash within one month, subject to the appeal being pending. Upon compliance, the Appellate Authority was directed to decide the appeal on merits, the bank attachment to be lifted, and any excess recovery to be refunded subject to the appeal’s outcome. The petition was disposed of accordingly by the Madras High Court.
