S. Balasubramani Vs State Tax Officer (Madras High Court)
The Madras High Court considered a writ petition challenging an assessment order dated 23.02.2026 passed under Section 74 of the Tamil Nadu Goods and Services Tax Act. The dispute concerned whether seigniorage fee amounting to ₹5,20,300 paid by the petitioner could be subjected to GST at the rate of 18%. Both parties informed the Court that the issue is pending before the Supreme Court in Udaipur Chambers of Commerce and Industry and others v. Union of India and others and that an interim order has already been granted by the Supreme Court.
Taking note of the pending proceedings, the High Court directed that the impugned assessment order and the consequent demand, if any, shall remain in abeyance until the Supreme Court decides the issue. The Court further clarified that if the Supreme Court rules in favour of the Revenue, the petitioner may pursue available remedies thereafter, whereas if the ruling favours the assessee, all consequential proceedings shall stand dropped.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition challenges the impugned order of assessment dated 23.02.2026 passed under Section 74 of the Tamil Nadu Goods and Services Act.
