M/S. Shri Devaraja Granite Mines v. The Assistant Commissioner (St)

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 24-02-2026

CORAM

THE HON'BLE MR JUSTICE C. SARAVANAN and W.M.P.Nos.7813 & 7815 of 2026 M/s. Shri Devaraja Granite Mines Rep By Its Authorized Representative M Sakthivel S.F.No.1158/4, 5 No.1162/1,2,3,4,5, No.1163/6,7, And No.1165/1, Irudukotai, Denkanikottai, Krishnagiri-635107 ..Petitioner(s) Vs.

The Assistant Commissioner (st) O/o. The Assistant Commissioner (st) Hosur South III Assessment Circle, G-floor, Integrated Commercial Taxes Building, Seetharam Nagar, Hosur-635 109 ..Respondent(s) Writ Petition is filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorari to call for the records of the respondent in his proceeding in GSTIN - 33AEDPM7288P2ZR/2021-22 and quash the proceeding dated 13.01.2026 passed therein. For Petitioner(s):

Mr. Raveendran B For Respondent(s):

Mr.V.Prashanth Kiran Government Advocate

ORDER

Mr.V.Prashanth Kiran, 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 challenged the impugned Show Cause Notice in GST DCR-01 dated 13.01.2026 wherein the petitioner was proposed to pay the tax under Reverse Charge Basis on account of the Seigniorage fee or Royalty payable to the State Government for the mining license given to the petitioner.

4. The learned counsel for the petitioner submitted that the petitioner is willing to deposit 10% of the disputed tax proposed in the impugned Show Cause Notice as a condition for denovo adjudication and he had also made an endorsement to that effect in the Court bundle.

5. The learned Government Advocate for the respondent has no objection for the same.

6. It is noticed that the issue is now pending before the Hon'ble Supreme Court.

7. Therefore, the case is remitted back to the Respondent to pass an order subject to the Petitioner depositing 10% of the disputed tax in cash 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. Recovery of balance tax shall be however subject to orders of the Hon'ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying. In case decision of the Hon'ble Supreme Court is in favour of the Petitioner, the tax amount now directed to be pre-deposit shall be refunded back or re-credited in the Petitioner's Electronic Cash Register. In case, the Hon'ble Supreme Court decides the case against the Petitioner, the Petitioner shall pay the tax amount subject to such amount as may be ordered to be paid.

9. Therefore, the Petitioner shall also file a reply to the Show Cause Notice dated 13.01.2026 in GST DRC-01 together with requisite documents to substantiate the defence within period of thirty (30) days from the date of

receipt of a copy of this order.

10. In case the Petitioner complies with the above stipulations, the Respondent shall proceed to pass a final order in line with the decision of the Hon'ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying. 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.

11. It is made clear that attachment of Petitioner's bank account, if any, shall be lifted subject to Petitioner depositing 10% of the disputed tax as ordered above and subject to Petitioner is not being in arrears of any other amount barring the amount demanded under the impugned Show Cause Notice.

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 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. 24-02-2026 Index: Yes/No Speaking/Non-speaking order BKN To:

The Assistant Commissioner (st) O/o. The Assistant Commissioner (st) Hosur South Iii, Assessment Circle, G-floor, Integrated Commercial Taxes Building, Seetharam Nagar, Hosur-635 109

C.SARAVANAN, J.

BKN 24-02-2026