Tvl.K.Rajagopalan and Co-Engineering Contractors Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
The Madras High Court disposed of the writ petitions filed by Tvl. K. Rajagopalan and Co-Engineering Contractors challenging the impugned Intimation Notices blocking the petitioner’s Input Tax Credit (ITC) under the GST regime. The petitions concerned two notices: W.P. No. 43540 of 2025 dated 30.05.2025 for Rs. 34,70,374 (CGST and SGST each Rs. 17,35,187) and W.P. No. 43546 of 2025 dated 24.10.2025 for Rs. 1,10,22,150 (CGST and SGST each Rs. 55,11,075). The petitioner contended that the reasons for blocking ITC were incorrect, supported by supplier certificates confirming that the supplier was a genuine, active taxpayer with its principal place of business in Coimbatore and additional locations in Salem. The petitioner had also responded to Show Cause Notices in FORM GST DRC-01 dated 30.07.2025 with a reply on 04.09.2025 and expressed willingness to deposit 10% of the disputed tax.
The Court noted the significant amounts involved and directed the 1st Respondent to pass appropriate orders on merits and in accordance with law, considering the petitioner’s reply to the Show Cause Notices as applicable to the impugned Intimation Notices, within four weeks. To balance interests, the petitioner was directed to deposit 10% of the disputed tax within thirty days from its Electronic Cash Register, upon which the attachment of the petitioner’s bank account would be automatically vacated. The Court clarified that only the amount under the Intimation Notices was in dispute, and if the petitioner failed to comply, the 1st Respondent could proceed to recover the tax as if the petitions were dismissed. The petitions were disposed of with these observations, and no costs were imposed. Connected miscellaneous petitions were also closed.
