Tvl.Basudev Enterprises, v. Deputy State Tax Officer-1,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 25-02-2026
CORAM
THE HON'BLE MR JUSTICE C. SARAVANAN and W.M.P.Nos.6671 & 6672 of 2026 Tvl.Basudev Enterprises, (Represented by is Proprietor VASUDEVAN DEEPAK) No.11/21, GNT Road, Athipedu,Tiruvallur, Tamil Nadu-600 067.
..Petitioner(s) Vs Deputy State Tax Officer-1, PONNERI ASSESSMENT CIRCLE, Integrated Commercial Taxes Office Complex, D.No.32,Room No.107, Elephant Gate Bridge Road, Chennai 600 003 ..Respondent(s) Writ Petition is filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorari calling for the records relating to the Detailed impugned order bearing GSTIN.33FAGPD8730K1ZM/2020-21 Dated 11.02.2025 passed by the Respondent and quash the same as being arbitrary, passed in violation of the principles of natural justice. For Petitioner(s):
Mr.K.Anand For Respondent(s):
Ms.Amirtha Poonkodi Dinakaran Government Advocate
ORDER
Ms.Amirtha Poonkodi Dinakaran, learned Government Advocate 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 Government Advocate for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 11.02.2025, which was preceded by a Show Cause Notice in GST DRC-01 dated 23.11.2024 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 11.02.2025.
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 14.02.2026.
5. 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 adjudication and the learned counsel had also made an endorsement to that effect in the Court bundle, which is extracted hereunder:
" The petitioner is ready to deposit 25% of the Tax in order dated 11.02.2025."
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 after the Hon'ble Supreme Court gives its verdict on the tax liability on the seigniorage fee on reverse charge mechanism, 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.
8. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 23.11.2024 together with requisite documents to substantiate the case by treating the impugned Order dated 11.02.2025 as an addendum to the Show Cause Notice dated 23.11.2024.
9. 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.
10. It is made clear that bank attachment, if any, 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.
11. 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 today.
12. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
13. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed. 25-02-2026 Index: Yes/No Speaking/Non-speaking order BKN
To:
Deputy State Tax Officer-1, PONNERI ASSESSMENT CIRCLE, Integrated Commercial Taxes Office Complex, D.No.32,Room No.107, Elephant Gate Bridge Road, Chennai 600 003
C.SARAVANAN J.
BKN 25-02-2026