24 HRS Productions Vs Superintendent of GST & Central Excise (Madras High Court)
The Madras High Court disposed of a writ petition filed by 24 HRS Productions challenging an order dated 29.04.2024, which followed Show Cause Notice No. 62/2023-GST-(SUPDT) dated 29.12.2023. The show cause notice required the Petitioner to file a reply and appear for a personal hearing. However, the Petitioner did not avail of the opportunity and consequently suffered the impugned order.
The Court noted that the limitation period for filing an appeal under Section 107 of the respective GST enactments, 2017 had already expired long before the writ petition was filed on 17.03.2026. During the proceedings, the Petitioner offered to deposit 50% of the disputed tax as a condition for fresh adjudication and made an endorsement to that effect before the Court.
Recording the Petitioner’s consent, the High Court remitted the matter to the Respondent for passing a fresh order on merits. The remand was made subject to the Petitioner depositing 50% of the disputed tax in cash or from the Electronic Cash Register within 30 days from receipt of a copy of the Court’s order.
The Petitioner was also directed, within the same period, to file a reply to Show Cause Notice No. 62/2023-GST-(SUPDT) dated 29.12.2023, along with the requisite documents supporting its case. The impugned order dated 29.04.2024 was to be treated as an addendum to the original show cause notice for this purpose.
Upon compliance with the stipulated conditions, the Respondent was directed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably within three months from the date of the reply/pre-deposit.
The Court further provided that any attachment of the Petitioner’s bank account would automatically stand vacated subject to compliance with the 50% pre-deposit condition and provided the Petitioner was not in arrears of any other amount for another tax period, apart from the amount demanded under the impugned order.
The High Court clarified that if the Petitioner failed to comply with any of the stipulated conditions, the Respondent would be at liberty to recover the tax in accordance with law as though the writ petition had been dismissed in limine. Before taking such action, the Respondent was required to give due notice to the Petitioner.
Accordingly, the writ petition was disposed of with the above directions, without costs, and the connected writ miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mr. R.P. Pragadish, Senior Standing Counsel 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 Senior Standing Counsel for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 29.4.2024, which was preceded by a Show Cause Notice No.62/2023 – GST – (SUPDT) dated 29.12.2023, 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 29.4.2024.
4. 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 17.03.2026.
5. At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 50% of the disputed tax as a condition for denovo adjudication and he has also made an endorsement to that effect in the Court bundle, which has been extracted hereunder:-
“Accepting to pay 50% of the tax demand”.
6. 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 50% 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.
7. Within such time, the Petitioner shall also file a reply to the Show Cause Notice No.62/2023 – GST – (SUPDT) dated 29.12.2023, together with requisite documents to substantiate the case by treating the impugned Order dated 29.04.2024 as an addendum to the Show Cause Notice dated 29.12.2023.
8. 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.
9. It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 50% 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.
10. 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
11. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
12. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
