Velan Hotels Ltd v. The Government Of Tamilnadu
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 05.11.2025
CORAM
THE HONOURABLE MR.JUSTICE C.SARAVANAN and WMP.No.16586 of 2025 Velan Hotels Ltd, Rep.by its Executive Director Mr.M.R.Gautham No.41, Kangeyam Road Tiruppur - 641 604.
...Petitioner
Vs.
1.The Government of Tamil Nadu Commercial Taxes Rep.by its Secretary Secretariat, Fort St.George Chennai 600 009.
2.The Assistant Commissioner (ST) Tiruppur Central -I Office of the Assistant Commissioner (ST) No.16, Emperor Building, First Floor Indira Nagar 1st Street Avinashi Road Tirupur 641 603.
...Respondents
Prayer: This Writ Petition is filed under article 226 of the Constitution of India, praying to issue a Writ of Mandamus, directing the 2nd respondent to re-determine and clarify that the section quoted in Section 1/7
74 of the TNGST Act whereas it ought to Section 73 of the TNGST Act in the assessment order for the financial year of 2018-2019 passed on 11.08.2023 in reference.No.ZD330823059690A and enable the petitioner to avail amnesty scheme for waiver of both the interest and penalty for the financial Year of 2018-2019.
For Petitioner : Mr.B.Ravi Raja For Respondents : Mr.V.Prashanth Kiran Government Advocate
ORDER
This Writ Petition has been filed for the following relief. This case was listed along with batch of cases wherein the jurisdiction of the respondent to pass under Section 74 of the respective GST Enactments Act challenged.
2. The operative portion of the impugned order seeking to demand penalty and interest reads as follows:
2/7
Details SGST CGST IGST TOTAL Tax Due - - 91752 91752 Penalty U/s 73 of the GST Act at 10% of the Tax due or Rs.10,000.00 whichever is higher - - Interest as per Sec.50(1) of the GST Act 257608 253685 - 511293 Total 257608 253685 100927 612220
3. The show cause notice preceded the impugned order has been issued under Section 74 of the Act. Detailed show cause notice dated 09.03.2022 however invokes Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017. Relevant portion of the said detailed show cause notice reads as under:
CALCULATION OF TAX LIABILITY In view of the above, it has been proposed to levy of interest and penalty as per the provision under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017, however before determination of such interest and penalty, its hereby show cause as to why above proposed interest and penalty as per law shall not be levied for the above said reasons as discussed in the show cause notice and file their objections, if any 3/7
to the above proposals, along with documentary evidences, in Form DRC-06, as required under Rule 142(4) of Central Goods and Services Tax Rules 2017 and Tamil Nadu Goods and Services Tax Rules 2017, within Thirty Days from the date of receipt of this show cause notice, failing which the assessment order will be passed according to law without further notice."
4. The learned counsel for the petitioner would submit that the petitioner would have prepared to workout remedy under Section 128 A of the respective Goods and Service Tax Act, 2017, but for reference to Section 74 in the show cause notice.
5. Under these circumstances, the learned counsel for the respondent was directed to get instructions as to whether, the impugned order has been passed under Sections 73 or 74 of the Act.
6. The learned counsel for the respondent has now reported that he had instruction to report that the impugned order is passed under Section 73 of the Act and that the reference to Section 74 of the Act in the 4/7
summary of the show cause notice was made erroneously.
7. Considering the same, there can be no impediment for the petitioner to workout the remedy under Section 128 A of the respective GST Enactments.
8. Therefore, this Writ Petition stands disposed of with above liberty. The respondents are directed to issue instruction to the Administrators to make suitable corrections in the web portal to amend the impugned order has been passed under Section 73 of the respective GST Enactments Act. Meanwhile, the petitioner shall move suitable application for setting the case under Section 128A of the respective GST Enactments.
9. With the above direction, this Writ Petition stands disposed of. No costs. Connected Writ Miscellaneous Petition is closed. 05.11.2025 Index : Yes/No 5/7
Speaking order : Yes/No Neutral Case Citation : Yes/No dna C.SARAVANAN , J.
dna To 1.The Government of Tamil Nadu Commercial Taxes Rep.by its Secretary Secretariat, Fort St.George Chennai 600 009.
2.The Assistant Commissioner (ST) Tiruppur Central -I Office of the Assistant Commissioner (ST) No.16, Emperor Building, First Floor Indira Nagar 1st Street Avinashi Road Tirupur 641 603.
and WMP.No.16586 of 2025 6/7
05.11.2025 7/7