Prajith Enterprises Vs State Tax Officer (Madras High Court)
The case was decided by the Madras High Court in a writ petition challenging an order issued under the Goods and Services Tax (GST) enactments. The writ petition was disposed of at the stage of admission itself with the consent of both parties.
The petitioner challenged an order dated 15 April 2025 issued in Form GST DRC-07 under Section 73 of the GST enactments for the tax period 2021–2022. The impugned order had been preceded by a show cause notice. Under this order, the respondent imposed late fee under Section 47(2) and a general penalty under Section 125 of the GST enactments. The order imposed late fees of ₹83,600 each under the Central GST and State GST laws and a penalty of ₹25,000 each under both enactments. The total demand raised under the order amounted to ₹2,17,200, consisting of ₹1,67,200 as late fee and ₹50,000 as general penalty.
The petitioner challenged the order primarily on the ground that another assessment order dated 13 May 2025 had also been issued for the same tax period. In that order, the petitioner had again been subjected to a penalty of ₹50,000. The petitioner had already filed an appeal on 11 August 2025 before the appellate authority against the assessment order dated 13 May 2025.
