Sri Balaji Industries v. Deputy State Tax Officer Ii,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.02.2026 CORAM :
THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.Nos.4564 and 4567 of 2026 Sri Balaji Industries, Represented by its Proprietor Govindhan Gopalakrishnan.
... Petitioner Vs.
The Deputy State Tax Officer - II, Hosur North - 1 Assessment Circle, Commercial Taxes Building, Second Floor, Seetharammedu, Hosur, Krishnagiri - 635 109.
... Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records of the Respondent herein in impugned order in Form DRC - 07 having reference No.ZD3312230886766 dated 13.12.2023 for the financial year 2017-2018 passed under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017 read with Central Goods and Service Tax Act, 2017 herein after referred to as GST Act, 2017 and quash the same as arbitrary, unjust and illegal and violative of principles of natural justice and consequently direct the respondent to redo the assessment after affording opportunity of personal hearing to the Petitioner.
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For Petitioner : Mr.V.Parthiban For Respondent : Mr.C.Harsharaj Special Government Pleader
ORDER
Mr.C.Harsharaj, learned Special Government Pleader takes notice for the Respondent.
2. This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Special Government Pleader for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 13.12.2023, which was preceded by a Show Cause Notice in GST DRC-01 dated 23.09.2023 wherein the Petitioner was called upon to appear for personal hearing. However, the Petitioner had not taken advantage of the same and thus, suffered the impugned Order dated 13.12.2023.
4. 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. The present Writ Petition has been filed only on 03.02.2026. 2/6
5. At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 100% of the disputed tax as a condition for denovo adjudication.
6. Under similar circumstances, Orders have been quashed and cases have been remitted back to the Respondent to pass a fresh order on terms subject to such Assessee depositing 25% to 100% of the disputed tax depending upon the length of delay in approaching the Court. I do not find any reason to take a different view in this case.
7. Therefore, to balance the interest of both parties viz., the Assessee and the Revenue, the case is remitted back to the Respondent to pass a fresh order on merits subject to the Petitioner depositing 100% 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.
8. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 23.09.2023 together with requisite documents to substantiate the case by treating the impugned Order dated 13.12.2023 as an addendum to the Show Cause Notice dated 23.09.2023. 3/6
9. Needless to state, any amount recovered from the Petitioner / paid by the Petitioner, towards the tax liability confirmed vide impugned order, shall be adjusted towards the aforesaid pre-deposit of 100% as ordered above. This will be however subject to verification by the Respondent.
10. 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 shall also stand automatically vacated.
11. It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 100% 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.
12. 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 4/6
tax in accordance with law as if this Writ Petition was dismissed in limine today.
13. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
14. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed. 06.02.2026 jas To:
The Deputy State Tax Officer - II, Hosur North - 1 Assessment Circle, Commercial Taxes Building, Second Floor, Seetharammedu, Hosur, Krishnagiri - 635 109.
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C.SARAVANAN, J.
jas and W.M.P.Nos.4564 and 4567 of 2026 06.02.2026 6/6