Tvl.Sri Kalki Trading, v. The State Tax Officer
IN THE HIGH Court OF JUDICATURE AT MADRAS
DATED : 17.12.2025 CORAM :
THE HONOURABLE MR.JUSTICE C.SARAVANAN WP No.31508 of 2025 and WMP.Nos.35274 & 35276 of 2025 TVL. SRI KALKI TRADING Rep by its Partner Mr.Nalla Muthu R aja N.No.65/111, Angalamman Koil Street, Choolai, Chennai 600 112 ...Petitioner Vs.
The State Tax Officer Choolai Assessment Circle No.1, PAPAJM, Annexure Building, Greams Road, 1st floor Chennai 06 ...Respondent Prayer : This Writ Petition is filed under Article 226 of the Constitution of India for issuance of the Writ of Certiorari to call for the records of the respondent in Order dated 15.05.2025 in GSTIN: 33ABYS6119B1Z1/2021-22 bearing Ref.No.ZD330525156067F and quash the same. For Petitioner :Mr.C.Rekhakumari For Respondent :Mrs.P.Selvi, GA
ORDER
Mrs.P.Selvi, learned Government Advocate takes notice for the Respondent.
Page No. 1 of 4
2.This Writ Petition is disposed of at the admission stage itself with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondent.
3. The petitioner is before this court against the impugned order dated 15.05.2025 passed by the Respondent for the tax period 2021-2022, whereby the assessment order dated 22.10.2024 in Form GST DRC - 07 has been revised.
4. The tax amount that was proposed in the Show Cause Notice in DRC-01 was confined to tax liability of Rs.1,06,484/- further along with interest and penalty as detailed below:- Sl.No.
Tax Interest Penalty Total 53,242.00 17,224.00 10,000.00 80,466,00 53,242.00 17,224.00 10,000.00 80,466,00 53,242.00 17,224.00 10,000.00 80,466,00 1,06,484,00 34,448.00 20,000.00 1,60,932.00
5. However, by the impugned order, the tax liability has been increased multi-fold times as detailed below :- Page No. 2 of 4
ABSTRACT OF TOTAL DEMAND PROPOSED ISSUE TAX INTEREST PENALTY CGST SGST IG ST CGST SGST IGST CGST SGST IGS T As per notice 32,37,942 32,37,942 1462663 1462663 323794 323794 0
6. Section 161 of the respective GST Enactments contemplates a proper Show Cause Notice to be issued to the assessee in case any order prejudicial to the assessee is to be made as per the third proviso to Section 161 of the respective GST Enactments revising the assessment orders passed in G ST DRC-07 for the respective tax period.
7. Since the impugned order has been passed without proper Show Cause Notice to the petitioner to file a reply and appear for personal hearing and whereby, the assessment order dated 22.10.2024 has been revised, the impugned order is unsustainable and therefore deserves to be quashed.
8. Accordingly, the impugned order is quashed and the case is remitted back to the respondent to pass a fresh order on merits within a period of 30 days from the date of receipt of a copy of this order. Page No. 3 of 4
C.SARAVANAN.J gv
9. Within such time, the Petitioner shall file a reply to the Show Cause Notice dated 15.05.2025 by treating the impugned order as an addendum to the Show Cause Notice dated 15.05.2025 and the Respondent thereafter shall proceed to pass appropriate order on merits.
10. This Writ Petition stands allowed by way of remand with the above observations. No costs. Connected Miscellaneous Petitions are closed. 17.12.2025 gv To The State Tax Officer Choolai Assessment Circle No.1, PAPAJM, Annexure Building, Greams Road, 1st floor Chennai 06 WP No.31508 of 2025 and WMP.Nos.35274 & 35276 of 2025 Page No. 4 of 4