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M/S.P G P Textiles Traders, v. the Assistant Commissioner (St)

GST assessment – writ of certiorari under Article 226

Madras HC25 Sept 2025WP/35707/2025

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Case brief

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What is this about?

W.P.No.35707 of 2025 (with W.M.P.Nos.39959 & 39961 of 2025), Madras High Court, C.SARAVANAN J., 25.09.2025 – GST assessment order quashing on 25% disputed tax deposit; remand for fresh order after DRC-01 reply; Article 226; Section 107 GST enactments 2017 appeal time-barred; personal hearing not availed; Electronic Cash Register deposit; dismissal in limine on non-compliance.

What did the court decide?

Impugned Assessment Order dated 14.08.2024 quashed; case remitted to the Respondent for fresh adjudication subject to deposit of 25% of disputed tax and filing of reply to DRC-01 within thirty days; on failure, recovery permitted as if petition dismissed in limine; no costs; connected miscellaneous petitions closed. ¶37

M/S.P G P Textiles Traders, Vs the Assistant… — GST and Indirect Tax | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the impugned Assessment Order dated 14.08.2024 for Tax Period 2019-2020, passed when the Petitioner did not attend the personal hearing and the appeal under Section 107 had become time-barred, should be quashed on terms.

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Court's answer

Under similar circumstances this Court has quashed impugned assessment orders on terms of a 25% deposit of disputed tax, and no different stand is warranted here.

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Ratio / Principle

The impugned Assessment Order dated 14.08.2024 is quashed and the case remitted to the Respondent for a fresh order, conditional on the Petitioner depositing 25% of the disputed tax in cash from the Electronic Cash Register within thirty days.

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Key takeaways

The Petitioner must file a reply to the DRC-01 Show Cause Notice dated 30.05.2024 with supporting documents within thirty days, treating the assessment order as an addendum to the notice.ratio¶6
On compliance, the Respondent shall pass fresh orders on merits and in accordance with law, after hearing the Petitioner, preferably within three months.ratio¶31
If the Petitioner fails to comply with the conditions, the Respondent may recover the tax in accordance with law as if the writ petition were dismissed in limine.

Detailed headnote1 paragraphs

GST assessment – writ of certiorari under Article 226 – assessment order dated 14.08.2024 for Tax Period 2019-2020 passed after assessee failed to attend personal hearing pursuant to DRC-01 show cause notice dated 30.05.2024, with appeal under Section 107 time-barred – following the Court's established practice, Madras High Court quashed the assessment order and remanded the matter to the Assistant Commissioner (ST), Annathanapatty Assessment Circle, on condition that the petitioner deposit 25% of the disputed tax from its Electronic Cash Register and file a reply to the DRC-01 notice within thirty days, treating the assessment order as an addendum to the show cause notice – on compliance, fresh order to be passed on merits within three months after hearing – on failure, respondent free to recover the tax as if the writ petition were dismissed in limine – no costs, connected miscellaneous petitions closed.

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W.P.No.35707 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 25.09.2025

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CORAM :

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THE HONOURABLE MR.JUSTICE C.SARAVANAN

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W.P.No.35707 of 2025

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and W.M.P.Nos.39959 & 39961 of 2025

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M/s P G P Textiles Traders, represented by its partner S.Sangeetha, No.51-C, Pulikuthi Main road, Gugai, Salem-636 006

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... Petitioner

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Vs.

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The Assistant Commissioner (ST) Annathanapatty Assessment Circle, Integrated Commercial Tax Building, Fourth Floor, Pitchards Raod, Hasthampatty, Salem-636 007

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... Respondent

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Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, to call for records of the respondent in his proceedings in GSTIN:33AATFP9542KIZJ/2019-2020, quash the order dated 14.08.2024.

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For Petitioner : Mr.P.V.Sudakar

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For Respondent : Mr.T.N.C Kaushik Additional Government Pleader

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Page No. 1 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.No.35707 of 2025

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ORDER

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Mr.T.N.C.Kaushik, learned Additional Government Pleader takes notice for the Respondent.

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This Writ Petition is being disposed of at the time of admission after

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hearing the learned counsel for the Petitioner and learned Additional Government Pleader for the Respondent.

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In this Writ Petition, the Petitioner has challenged the impugned Assessment Order dated 14.08.2024 which was preceded by a Show Cause Notice in GST DRC-01 dated 30.05.2024 for the Tax Period 2019 – 2020. The Petitioner was called upon to appear for personal hearing. However, the Petitioner had not taken advantage of the same and has thus, suffered the impugned Assessment Order dated 14.08.2024. The limitation for filing an appeal under Section 107 of the respective GST enactments, 2017 has also expired.

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_____________ Page No. 2 of 5_

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https://www.mhc.tn.gov.in/judis

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W.P.No.35707 of 2025

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It is noticed that under similar circumstances, this Court has come to the rescue of persons like the Petitioner by quashing the impugned Assessment Order on terms subject to the Petitioner depositing 25% of the disputed tax. I do not find any reason to take a different stand in this case.

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Considering the same, the impugned Assessment Order dated 14.08.2024 is quashed and the case is remitted back to the Respondent to pass a fresh order subject to the Petitioner depositing 25% of the disputed tax in cash from the Petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order.

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The Petitioner shall file a reply to the Show Cause Notice in DRC-01 dated 30.05.2024 together with requisite documents to substantiate the case by treating the impugned Assessment Order dated 14.08.2024 as an addendum to the Show Cause Notice dated 30.05.2024 within a period of thirty (30) days from the date of receipt of a copy of this order.

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In case the Petitioner complies with the above stipulated conditions,

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the Respondent shall proceed to pass fresh orders on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3)

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Page No. 3 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.No.35707 of 2025

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months thereafter, after hearing the Petitioner.

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In case the Petitioner fails to comply with any of the conditions stipulated above, 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.

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This Writ Petition stands disposed of with the above observations. No costs. Connected Miscellaneous Petitions are closed.

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25.09.2025

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Neutral Citation : Yes / No

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jas

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The Assistant Commissioner (ST) Annathanapatty Assessment Circle, Integrated Commercial Tax Building, Fourth Floor, Pitchards Raod, Hasthampatty, Salem-636 007

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C.SARAVANAN, J.

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_____________ Page No. 4 of 5_

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https://www.mhc.tn.gov.in/judis

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W.P.No.35707 of 2025

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jas

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W.P.No.35707 of 2025