Tvl M D Constructions v. The Assistant Commissioner
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 12.09.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ and W.M.P. Nos.38906 and 38910 of 2025 Tvl.M.D.Constructions, Represented by its Proprietor Mr.K.Dhanasekaran, No.1/189A, Thiyagikumaran Colony, Chettipalayam, Thirumurugan Poondi Post, Tiruppur, Tamil Nadu-641 652.
GSTIN: 33ALWPD7367A1Z2
...Petitioner(s)
vs.
The Assistant Commissioner, Gandhi Nagar-Assessment Circle, Gandhi Nagar, Tiruppur-1, Tamil Nadu.
...Respondent(s)
PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari calling for the records of the respondent herein in its impugned order passed by the respondent order in GSTIN:33ALWP7367A1Z2/2019-2020 dated 24.08.2024 along with the consequential order in Form DRC-07 bearing Reference No.ZD330824223265J dated 24.08.2024 for the period 2019-2020 and quash the same. For Petitioner(s) : Ms.R.Hemalatha For Respondent(s) : Mrs.P.Selvi Government Advocate 1/6
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 impugned order dated 24.08.2024 relating to the assessment year 2019-20.
3. It is submitted by the learned counsel for petitioner that petitioner is registered under the Goods and Services Tax Act, 2017. During the relevant period 2019-20, the petitioner filed their returns and paid appropriate taxes. However, on verification of the returns the following discrepancies were interalia noticed: i) Under declaration of output tax and ii) Excess claim of ITC.
4. Pursuant thereto, a show cause notice in DRC-01 was issued on 18.05.2024, followed by reminder notice dated 13.08.2024 with personal hearing on 21.08.2024. However, the petitioner had not responded to any of the above notices, the impugned order was thus passed confirming the proposal. It is submitted by the learned counsel for petitioner that the show cause notice and 2/6
impugned assessment order were uploaded on the GST Portal. Petitioner came to know about the proceedings through tax consultant later and was thus unable to participate in the adjudication proceedings. It is submitted by the learned counsel for petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancies.
5. The learned counsel for the petitioner would place reliance upon the recent judgment of this Court in the case of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.
6. It was further submitted that petitioner is ready and willing to pay 25% of the disputed tax and that they may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Government Advocate appearing for the respondent does not have any serious objection.
7. By consent of both parties, the writ petition stands disposed of on the 3/6
following terms:
a) The impugned order dated 24.08.2024 is set aside. b) The petitioner shall deposit 25% of the disputed taxes as agreed to by both the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of uploading of web copy without waiting for the receipt of the certified copy.
c) 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 25% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 25 % of disputed taxes to be paid, if any, within a period of one week from the date of uploading of web copy without waiting for the receipt of the certified copy. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation. d) Failure to comply with the above condition viz., payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of uploading of web copy of this order, shall result in restoration of the impugned order.
e) If there is any recovery by way of attachment of Bank account or garnishee proceedings, the same shall be lifted /withdrawn on complying with the above condition viz., payment of 25 % of the disputed taxes. 4/6
f) On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of compliance of the conditions relating to deposit in Clause (b) and (c) supra, along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is made clear that if the above conditions viz., payment of 25% of disputed taxes is not complied or objections are not filed within the stipulated time as stated above the impugned order of assessment shall stand restored.
8. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
12.09.2025 Speaking (or) Non Speaking Order Index : Yes/ No mka To:
The Assistant Commissioner, Gandhi Nagar-Assessment Circle, Gandhi Nagar, Tiruppur-1, Tamil Nadu.
5/6
MOHAMMED SHAFFIQ, J.
mka 12.09.2025 6/6