Tvl. Blue Steels v. State Tax Officer (Fac)
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12-03-2026
CORAM
THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ and W.M.P. Nos.9372 and 9373 of 2026 Tvl. Blue Steels Rep. by its Proprietor Murugesan, No.3035, Ground Floor, TNHB Road, Kakkalur, Tiruvallur-602 001.
..Petitioner(s) Vs State Tax Officer (FAC), No.4/109- GST Integrated Building, Nazarathpet, Chennai 123.
..Respondent(s) PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying for a writ of Certiorari calling for the records of impugned order dated 24.11.2025 in Form GST DRC-07 bearing Reference No.ZD331125418126T along with its annexure of the respondent passed in Petitioner's GSTIN33AALHS7739B1Z0 for the FY 2021-2022 and quash the same. For Petitioner(s):
Mr.R.Anish Kumar For Respondent(s):
Ms.Amirtha Poongodi Government Advocate
ORDER
By consent of learned counsel on both sides, this writ petition is taken up for final disposal at the admission stage itself.
2. The present writ petition is filed challenging the order of assessment dated 24.11.2025 for the financial year 2021-22 and quash the same.
3. Ms.Amirtha Poongodi, learned Government Advocate takes notice for respondent.
4. In this Writ Petition, the Petitioner has challenged the impugned Assessment Order dated 24.11.2025 which was preceded by an intimation notice in DRC-01A dated 09.05.2025 and Show Cause Notice in GST DRC-01 dated 11.06.2025. During scrutiny, it was noticed that there was excess claim of ITC and late fee. Thereafter, impugned assessment order dated 24.11.2025 came to be passed.
5. It is noticed that under similar circumstances, this Court has come to the rescue of persons like petitioner by quashing the impugned assessment order on terms subject to petitioner depositing 10% of the disputed tax, which was agreed to by the learned Government Advocate for respondent.
6. Considering the same, the impugned assessment order dated 24.11.2025 is quashed and the case is remitted back to the respondent to pass a fresh order subject to the petitioner depositing 10% of the disputed tax in cash from the petitioner's Electronic Cash Register within a period of four weeks from the date of receipt of a copy of this order. If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 10% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 10 % of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation.
7. Petitioner shall file a reply to the Show Cause Notice in DRC-01 dated 11.06.2025 together with requisite documents to substantiate the case by treating the impugned assessment order dated 24.11.2025 as an addendum to the show cause notice dated 11.06.2025 within a period of four weeks from the date of receipt of a copy of this order.
8. In case petitioner complies with the above stipulated conditions, respondent shall proceed to pass fresh orders on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months
thereafter, after hearing the Petitioner. Subject to petitioner complying with the above stipulations, attachment of bank account of petitioner, if any, shall stand automatically vacated.
9. In case petitioner fails to comply with any of the conditions stipulated above, respondent is at liberty to proceed against the petitioner in accordance with law as if this Writ Petition was dismissed in limine today. Thereafter, it is for the respondent to take steps against the petitioner to recover the tax that has been confirmed in the impugned assessment order dated 24.11.2025.
10. Needless to state, before passing any such order, respondent shall give due notice to the petitioner. It is made clear that bank attachment shall be lifted subject to the petitioner depositing 10% 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. The Writ Petition stands disposed of with the above observations. No costs. Consequently, the connected miscellaneous petitions are closed. 12-03-2026 Index: Yes/No Speaking/Non-speaking order MKA
To:
The State Tax Officer (FAC), No.4/109- GST Integrated Building, Nazarathpet, Chennai 123
MOHAMMED SHAFFIQ J.
MKA 12-03-2026