B. Perumal Vs Deputy Commercial Tax Officer (Madras High Court)
In B. Perumal Vs Deputy Commercial Tax Officer, the Madras High Court examined a writ petition challenging a penalty imposed under Section 129(1)(a) of the TNGST Act, 2017 in relation to goods in transit. The petitioner sought quashing of the order dated 03.02.2026 and refund of the penalty amount with interest, contending that there was no discrepancy except a typographical error in mentioning the GSTIN.
The Court noted that the demand arose from alleged discrepancies during transit of goods. However, it was undisputed that the petitioner had already paid the penalty amount as demanded. Referring to Section 129(5) of the TNGST Act, the Court observed that upon payment of the amount, all proceedings relating to the notice are deemed to be concluded.
In view of this statutory position, the Court held that no further adjudication was required in writ jurisdiction. At the same time, it clarified that since the order was passed under the Act, the petitioner retained the right to challenge it before the appellate authority under Section 107. The Court further noted that as the entire demanded amount had already been paid, no additional pre-deposit would be required for filing the appeal.
