Tvl VIP Clothing Limited Vs Assistant Commissioner (ST) (Madras High Court)
The writ petition challenged an Assessment Order dated 26.02.2025 in Form GST DRC-07 for the financial year 2020-2021, passed under Section 73 of the GST enactments along with notice under Section 50(1). The assessment was preceded by a show cause notice in DRC-01 dated 22.11.2024, to which the petitioner did not file a reply, resulting in the impugned order.
The petitioner subsequently filed a rectification application on 27.02.2025 under Section 161, which was rejected on 19.11.2025. The rejection order stated that only errors apparent on the face of the record, such as clerical or arithmetical mistakes, could be rectified, and the impugned order did not fall within that category.
Before the Court, the petitioner sought liberty to file a statutory appeal against the assessment order. The respondent opposed the prayer. Considering the submissions and consistent views taken in similar matters, the Court granted liberty to file a statutory appeal within thirty days, subject to deposit of 25% of the disputed tax in cash or through the Electronic Cash Register.
The Court directed that upon such filing, the Appellate Authority may decide the appeal on merits without reference to limitation. The attachment of the petitioner’s bank account would stand vacated automatically upon compliance, provided there were no other tax arrears. Failure to comply would entitle the respondent to proceed with recovery in accordance with law. The writ petition was disposed of without costs.
