Introduction: The recent judgment by the Hon’ble Madras High Court in the case of Rathinavel Pandian v. Assistant Commissioner (ST) [W.P. (MD) No. 27701 of 2023 dated November 27, 2023] has significant implications for taxpayers facing demands for the recovery of Input Tax Credit (ITC) under the Tamil Nadu Goods and Services Act, 2017 (TNGST Act). The court’s decision allows the Assessee to withdraw the pre-deposit amount from a frozen bank account specifically for filing an appeal.


Rathinavel Pandian (“the Petitioner”) filed a writ petition against order dated May 08, 2023 (“the Impugned Order”) passed by the Revenue Department (“the Respondent”) wherein the demand for recovery of Input Tax Credit (“ITC”) was confirmed along with imposition of penalty and interest under Section 73 of the Tamil Nadu Goods and Services Act, 2017 (“the TNGST Act”). Also, the Petitioner’s Bank Account was frozen during the proceedings.


The Hon’ble Madras High Court in W.P. (MD) No. 27701 of 2023 held that as an interim measure for filing of appeal, the Respondent shall permit the Petitioner to withdraw 10 percent of the amount required for filing of appeal. 

Conclusion: The judgment of the Madras High Court in Rathinavel Pandian v. Assistant Commissioner sets a precedent for Assessees facing similar circumstances. The court’s recognition of the practical challenges posed by a frozen bank account and the provision of a partial withdrawal for filing an appeal reflects a nuanced approach. This decision showcases the court’s commitment to ensuring a fair and just resolution of tax disputes, striking a balance between the interests of the Assessee and the Revenue Department. For further inquiries, the author can be contacted at


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February 2024