Case Law Details
Vinayaga Die Stamping Vs State Tax Officer (Madras High Court)
The Madras High Court disposed of a writ petition challenging an order dated 22.09.2025 passed under the GST enactments. The impugned order had been preceded by a Show Cause Notice in Form GST DRC-01 dated 06.07.2024, requiring the petitioner to submit a reply and appear for personal hearing. However, the petitioner failed to respond to the notice or participate in the proceedings.
The Court noted that the respondent had issued multiple reminders dated 09.12.2024, 09.09.2025, and 17.09.2025, calling upon the petitioner to file a reply and attend personal hearings scheduled on 16.12.2024, 12.09.2025, and 23.09.2025. Despite these opportunities, the petitioner neither submitted any response nor appeared before the authority, resulting in the passing of the impugned order.
The Court further observed that the statutory limitation period for filing an appeal under Section 107 of the GST enactments had expired well before the filing of the writ petition on 02.04.2026.
During the hearing, the petitioner expressed willingness to deposit 25% of the disputed tax amount as a condition for reconsideration of the matter. Recording this undertaking, the Court remitted the case back to the respondent for fresh adjudication on merits, subject to the petitioner depositing 25% of the disputed tax in cash or through the Electronic Cash Register within thirty days from receipt of the order.
The petitioner was also directed to submit a reply to the original Show Cause Notice along with supporting documents within the same period, treating the impugned order as an addendum to the Show Cause Notice. Upon compliance, the respondent was directed to pass a fresh order on merits, preferably within three months.
The Court further ordered that any attachment of the petitioner’s bank account would stand automatically vacated upon compliance with these conditions, provided there were no arrears relating to other tax periods. Failure to comply would entitle the respondent to recover the tax in accordance with law as though the writ petition had been dismissed at the threshold.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mrs. P. Selvi, learned Government Advocate takes notice for the Respondent.
2. This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 22.09.2025, which was preceded by a Show Cause Notice in GST DRC-01 dated 06.07.2024 wherein the Petitioner was called upon to file a reply and to appear for a personal hearing. However, the Petitioner did not take advantage of the same and has thus suffered the impugned Order dated 22.09.2025.
4. The Petitioner was also issued with Reminders on 09.12.2024, 09.09.2025 and 17.09.2025, which called upon the Petitioner to file a reply and to appear for a personal hearing. The Petitioner however neither filed any reply nor appeared for the personal hearing fixed on 16.12.2024, 12.09.2025 and 23.09.2025. Thus, the impugned Order has been passed.
5. It is noticed that the limitation for filing an appeal under Section 107 of the respective GST enactments, 2017 against the impugned Order has already expired long before. However, the present Writ Petition has been filed only on 02.04.2026.
6. At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 25% of the disputed tax as a condition for denovo adjudication.
7. The learned counsel for the Petitioner has also made an following endorsement to that effect in the Court bundle which has been extracted hereunder:-
“Petitioner agree to pay 25% of Tax Due, Bank A/C may lift.”
8. Recording the above consent given by the Petitioner, the case is remitted back to the Respondent to pass a fresh order on merits subject to the Petitioner depositing 25% of the disputed tax in cash or 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.
9. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 06.07.2024 together with requisite documents to substantiate the case by treating the impugned Order dated 22.09.2025 as an addendum to the Show Cause Notice dated 06.07.2024.
10. In case the Petitioner complies with the above stipulations, the Respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such reply/pre-deposit. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner if any, shall also stand automatically vacated.
11. It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 25% of the disputed tax as ordered above and the Petitioner not being in arrears of any other amount for any other tax period barring the amount demanded under the impugned Order.
12. In case the Petitioner fails to comply with any of the stipulations, the Respondent is at liberty to proceed against the Petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine
13. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
14. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
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