M/S.Grace Metal Stores v. The State Tax Officer,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 22.01.2026 CORAM :
THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.Nos.54567 and 54570 of 2025 M/s.Grace Metal Stores, Rep.by its Prop.Mr.Devasigamani, GSTIN:33AKRPD3600L2Z9 18, Malaiappan Street, Dhasari Batma Nagar, Maduravoyal, Chennai-600 095.
... Petitioner Vs.
The State Tax Officer, Koyambedu Assessment Circle, No.1, 5th Floor, PAPJM Annx.Building, Greams Road, Chennai-600 006.
... Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, calling for the records pertaining to the impugned Order issued by the Respondent electronically through the Common Portal vide FORM GST DRC 07 Ref.No.ZD330625052320U dated 06.06.2025 and quash the same.
For Petitioner : Ms.Akila, S.
For Respondent : Mr.V.Prashanth Kiran Government Advocate
ORDER
This is the second round of litigation before this Court by the petitioner.
2. Earlier, the petitioner has suffered from the Assessment Order dated 05.02.2024 which was challenged by the petitioner in W.P.No.19023 of 2024. 1/7
3. By order dated 05.08.2024 in W.P.No.19023 of 2024, the aforesaid Assessment Order dated 05.02.2024 has been set aside and the case is remitted back to the Respondent. The operative portion of the order dated 05.08.2024 in W.P.No.19023 of 2024 reads as under:- "7. Upon examining the impugned orders, it is evident that the tax proposal was confirmed because the petitioner failed to reply to the show cause notice and also failed to attend the personal hearing. According to the petitioner, the reason for not sending their reply to the show cause notice that they were not aware of the notice issued through the GST Portal and the petitioner would be able to establish their case if an opportunity is provided. In these circumstances, it is just and necessary to provide an opportunity to the petitioner to contest the tax demand on merits by putting the petitioner on terms.
8. In the aforesaid facts and circumstances, the impugned order as well as the connected Proceedings dated 05.02.2024 issued by the Respondent are set aside on condition that the petitioner remits 10% of the disputed tax demand in respect of the impugned assessment period within a period of four weeks from the date of receipt of a copy of this order and thereafter the petitioner is directed to file reply to the Show Cause Notice dated 01.11.2023, within a period of two weeks and on receipt of the reply, the Respondent shall consider the same and pass appropriate orders on merits and in accordance with law, after providing a reasonable opportunity to the Petitioner, including a personal hearing, within a period of four weeks thereafter."
4. After the aforesaid order was passed on 05.08.2024, the petitioner was issued with a Show Cause Notice on 23.10.2024 to which the petitioner filed a reply on 05.11.2024. After considering the aforesaid reply dated 05.11.2024, the impugned Assessment Order dated 06.06.2025 impugned in 2/7
this writ petition has been passed. The operative portion of the impugned order reads as under:- 3/7
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5. It is noticed that there is no scope for interfering with the impugned order passed on 06.06.2025 as there is no material or procedural irregularity committed by the Officer while passing the impugned order.
6. Considering the facts, the petitioner may have a case on merits therefore, the petitioner can be given liberty to challenge the impugned order before the Appellate Authority subject to petitioner depositing another 40% of the disputed tax confirmed vide impugned Assessment Order dated 06.06.2025 over and above 10% already pre-deposited by the petitioner pursuant to the order dated 05.08.2024 in W.P.No.19023 of 2024 in cash or from the petitioner's Electronic Cash Register within a period of 30 days from the date of receipt of a copy of this order. Learned counsel also consents for such pre-deposit.
7. In case the petitioner files such Appeal, the Appellate Authority shall dispose of the same on merits without further reference to limitation.
8. 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. 5/7
9. Needless to state, before passing any such order, the Appellate Authority shall give due notice to the Petitioner.
10. This Writ Petition stands disposed of with the above observations. No costs. Consequently, connected Writ Miscellaneous Petitions are closed. 22.01.2026 ssn To:
The State Tax Officer, Koyambedu Assessment Circle, No.1, 5th Floor, PAPJM Annx.Building, Greams Road, Chennai-600 006.
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C.SARAVANAN, J., ssn and W.M.P.Nos.54567 and 54570 of 2025 22.01.2026 7/7