← Library
Madras High CourtWP/40159/2025disposed of

Quality Traders v. The Deputy State Tax Officer-Ii

2025-10-30Honourable Mr Justice C. Saravanan8 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 30-10-2025

CORAM

THE HONOURABLE MR JUSTICE C. SARAVANAN and W.M.P.Nos.45104, 45105 & 45106 of 2025 Quality Traders Rep by its Partner Mrs DEV ANBU No.32, Duraisamy Pillai Street, West Tambaram, Chennai 600 045.

Petitioner(s) Vs

1. The Deputy State Tax Officer-II (formerly Known As Deputy Commercial Tax Officer) Tambaram Assessment Circle, 3rd Floor, Room No.342, Integrated Building For Commercial Taxes And Registration Department, Nandanam, Chennai-600 035.

2.The Deputy Commissioner (ST) (FAC), Tambaram Zone, 4th Floor, PAPJM Building Greams Road, Chennai 600 006.

3.The Branch Manager, HDFC Bank, West Tambaram Branch, West Tambaram, Chennai 600 045 Respondent(s) PRAYER Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorarified Mandamus, calling for records in Reference Number: ZD 330 523 115 2860/2021-22 dated 24.05.2023 on the file of the 1 st respondent and further direction, directing the 2 nd Respondent to de-freeze the bank account bearing in GSTIN: 33 AAA FQ4 138 M1Z7/2021-22 dated 23.07.2025 of the Petitioner-Registered Taxable Person. For Petitioner(s):

Mr.S.Ramanan For Respondent:

Mr.C.Harsharaj Special Government Pleader (For R1 & R2) Mr.C.Mohan and Ms.A.Rexy Josephine For M/s.King & Partridge (For R3)

ORDER

Mr.C.Harsharaj, learned Special Government Pleader, takes notice for respondents 1 and 2 and Mr.C.Mohan and Ms.A.Rexy Josephine for M/s.King & Partridge, learned counsel, takes notice for the 3 rd respondent.

2. With the consent of the learned counsel for the Petitioner and the learned Special Government Pleader for respondents 1 and 2 and the learned counsel for the 3 rd respondent, this Writ Petition is being disposed of at the time of admission.

3. In this Writ Petition, the Petitioner has challenged the impugned order dated 24.05.2023, which preceded a notice in DRC-01 dated 25.03.2023 for the tax period between April 2021 and March 2022.

4. Reading of the impugned order dated 24.05.2023 indicates that the Petitioner has not participated in the assessment proceedings by filing a reply to the Show Cause Notice in DRC-01 dated 25.03.2023 nor appeared for the personal hearing fixed.

5. It is submitted that the impugned order dated 24.05.2023 was only uploaded in GST Portal and the petitioner came to know about the entire existence of the demand for tax only after the respondent contacted the

petitioner over phone. It is further submitted that the Petitioner has a fair case to succeed and therefore, the case be remitted back to the Respondent on terms.

6. The learned counsel for the respective respondents would submit that the Petitioner having slept over the rights and having not cooperated with the Respondent at any stage, the Petitioner deserves no sympathy and therefore, the Writ Petition be dismissed with exemplary costs.

7. Having considered the submissions made by the learned counsel for the Petitioner and the respective learned counsels for the Respondents.

8. Since there is an enormous number of days of delay in approaching this Court, I am inclined to come to the rescue of the Petitioner subject to conditions following the consistent view of this Court under similar circumstances.

9. If the writ petition was filed within the reasonable time, the Court could have directed the Petitioner to deposit 25% of the disputed tax. Since the

impugned Assessment Order dated 24.05.2023 is more than two years, in order to balance the interest of the Petitioner and the interest of the Revenue, this Court is inclined to direct the Petitioner to deposit 100% of the disputed tax in cash within a period of thirty (30) days from the date of receipt of copy of this order.

10. Simultaneously, the Petitioner shall file a reply to the Show Cause Notice in DRC-01 dated 25.03.2023 together with requisite documents to substantiate the case by treating the impugned order dated 24.05.2023 as addendum to the Show Cause Notice dated 25.03.2023 within a period of 30 days from the date of receipt of copy of this order.

11. The Respondents shall proceed to pass a fresh order on merits subject to the Petitioner complying with the stipulated conditions. In case, the Petitioner fails to comply with any of the stipulated conditions, the Respondents are at liberty to proceed against the Petitioner in the manner known to law as if this Writ Petition was dismissed in limine today.

12. Subject to the Petitioner depositing 100% of the disputed tax as stipulated above, if any attachment of the bank account of the Petitioner shall stand lifted.

13. Accordingly, this Writ Petition is disposed of. Consequently, connected miscellaneous petitions are closed. There shall be no order as to costs.

30-10-2025 (2/2) kak Index:Yes/No Speaking/Non-speaking order Internet:Yes To 1.The Deputy State Tax Officer-ii (formerly Known As Deputy Commercial Tax Officer) Tambaram Assessment Circle, 3rd Floor, Room No.342, Integrated Building For Commercial Taxes And Registration Department, Nandanam, Chennai-600 035.

2.The Deputy Commissioner (ST) (FAC), Tambaram Zone, 4th Floor, PAPJM Building Greams Road, Chennai 600 006.

3.The Branch Manager, HDFC Bank, West Tambaram Branch, West Tambaram, Chennai 600 045

C.SARAVANAN, J.

kak (2/2) 30-10-2025