Case Law Details
P Sankar Lorry Body Labour Works Vs Deputy State Tax Officer II (Madras High Court)
The petitioner challenged an ex-parte GST assessment order dated 10.11.2025, which had been passed after issuance of a Show Cause Notice in Form GST DRC-01 dated 14.08.2025. The notice had called upon the petitioner to file a reply and attend a personal hearing. However, the petitioner did not respond to the notice or avail the opportunity of hearing, resulting in the impugned order being passed.
The Court noted that the statutory period for filing an appeal under Section 107 of the GST enactments, 2017, had already expired well before the writ petition was filed in April 2026.
During the hearing, the petitioner expressed willingness to deposit 25% of the disputed tax as a condition for a fresh adjudication of the matter. An endorsement agreeing to pay a 25% deposit was also made on the court records.
Recording this consent, the Court remitted the matter back to the respondent for fresh consideration on merits. The remand was made subject to the condition that the petitioner deposit 25% of the disputed tax, either in cash or through the Electronic Cash Register, within 30 days from the date of receipt of the order.
The Court further directed the petitioner to submit a reply to the Show Cause Notice dated 14.08.2025, along with supporting documents, within the same period. The impugned assessment order dated 10.11.2025 was directed to be treated as an addendum to the original show cause notice.
Upon compliance with these conditions, the respondent was directed to pass a fresh order on merits and in accordance with law, preferably within three months from the date of receipt of the reply and pre-deposit.
The Court also ordered that any bank account attachment of the petitioner would stand automatically vacated upon compliance with the conditions, provided the petitioner deposited 25% of the disputed tax and had no outstanding dues for any other tax period apart from the demand raised in the impugned order.
The Court clarified that if the petitioner failed to comply with any of the stipulated conditions, the respondent would be free to recover the tax in accordance with law as though the writ petition had been dismissed at the threshold. Before passing any such order, the respondent was required to give due notice to the petitioner.
Accordingly, the writ petition was disposed of with the above directions.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent.
2. In this Writ Petition, the Petitioner has challenged the impugned Order dated 11.2025, which was preceded by a Show Cause Notice in GST DRC-01 dated 14.08.2025 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 10.11.2025.
3. 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 04.2026.
4. 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
5. The learned counsel for the Petitioner has also made an endorsement to that effect in the Court bundle, which is extracted hereunder:-
“ Agreed to pay 25% of deposit”
6. Recording the above consent, 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.
7. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 14.08.2025 together with requisite documents to substantiate the case by treating the impugned Order dated 10.11.2025 as an addendum to the Show Cause Notice dated 14.08.2025.
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 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.
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.
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