Tvl.Vel Associates Vs The Assistant Commissioner (St) — Writ and Judicial Review | Madras HC (2026)

Tvl.Vel Associates Vs The Assistant Commissioner (St) — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ Petition allowed on terms: petitioner to pay 25% of the disputed tax amount within four weeks of receipt of a web copy of the order; upon payment, the impugned Form GST DRC-07 order dated 10.10.2025 stands set aside and the matter is remitted to the first respondent, before whom the petitioner must appear, file a reply and produce documentary evidence; first respondent to pass fresh orders in accordance with law as expeditiously as possible; freezing of the petitioner's bank account lifted; no costs; connected Miscellaneous Petitions closed.

Issue for consideration

Whether the ex-parte Form GST DRC-07 order dated 10.10.2025 for FY 2023-2024, assailed as violative of principles of natural justice for want of effective communication of the show cause and personal hearing notices, should be quashed and a fresh order directed after hearing the petitioner. +1 more

Court's answer

On perusal of the impugned order the Court recorded that, where there was a fraudulent availment of ITC from a non-existent taxpayer and the petitioner did not avail the opportunity when the show cause notice and personal hearing notices were uploaded on the web portal, the impugned order came to be passed ex parte. Recorded as explanation of how the impugned order arose, not as determinative of the conditional relief ultimately granted.

Ratio / Principle

Taking into account the petitioner's said submission, the Court held that one more opportunity can be granted to the petitioner on condition that the petitioner pays 25% of the disputed tax amount, and allowed the Writ Petition on the terms set out.

Key takeaways

The petitioner shall pay 25% of the disputed tax amount within a period of four weeks from the date of receipt of a web copy of this order.ratio¶30
Upon such payment, the impugned order dated 10.10.2025 shall stand set aside and the matter shall stand remitted back to the file of the first respondent.ratio¶31
The petitioner shall appear before the first respondent without fail, file a reply and produce such documentary evidence in support of his claim.

Detailed headnote1 paragraphs

MADRAS HIGH COURT (MADURAI BENCH) — Hon'ble Mr. Justice D.Bharatha Chakravarthy — W.P.(MD) No.8585 of 2026 (with W.M.P.(MD) Nos.6962 & 6964 of 2026) — Decided 30.03.2026. Tvl. Vel Associates (GSTIN 33AMTPT5476E1ZH) filed a writ petition under Article 226 seeking certiorarified mandamus against an ex-parte order in Form GST DRC-07 (Ref. ZD331025082272S) dated 10.10.2025 for FY 2023-2024 issued by the Assistant Commissioner (ST), Tirunelveli Junction Assessment Circle, contending violation of natural justice. On perusal, the Court noted the show cause and personal hearing notices had been uploaded on the web portal and the petitioner had not availed them, hence the ex parte order, in a matter involving alleged fraudulent availment of ITC from a non-existent taxpayer; the petitioner pleaded absence of effective physical service or proper intimation. Granting one more opportunity on the pre-condition of payment of 25% of the disputed tax within four weeks of receipt of a web copy of the order, the Court set aside the impugned order upon such payment, remitted the matter to the first respondent for fresh orders in accordance with law after reply and production of documentary evidence, ordered lifting of the freeze on the petitioner's HDFC bank account, awarded no costs and closed the connected miscellaneous petitions.

W.P.(MD) No.8585 of 2026

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

DATED : 30.03.2026

CORAM

THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY

W.P.(MD) No.8585 of 2026 and

W.M.P.(MD) Nos.6962 & 6964 of 2026

Tvl.Vel Associates, GSTIN: 33AMTPT5476E1ZH, Represented by its Proprietor, Shri.Thanasingh, No.9S/1, Madurai Road, Tirunelveli, Tamil Nadu - 627 001. ... Petitioner

Vs.

1.The Assistant Commissioner (ST), Tirunelveli Junction Assessment Circle, Commercial Tax Offices, 1^st Floor, New Bus Stand, Tirunelveli.

2.The Assistant Manager, HDFC Bank Limited, Vannarapettai Branch, No.341/2, North Bye Pass Road, BGS Towers, Vannarapettai, Tirunelveli - 627 002. ... Respondents

Prayer : Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus to call for the records

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W.P.(MD) No.8585 of 2026

of the first respondent vide the impugned ex-parte order in Form GST DRC-07 bearing ZD331025082272S dated 10.10.2025 for the financial year 2023-2024 and quash the same as being violative of principles of natural justice and to direct the first respondent to pass fresh order after hearing the petitioner.

For Petitioner : Mr.S.Jai Kumar For R1 : Mr.R.Suresh Kumar Additional Government Pleader

O R D E R

This Writ Petition is filed challenging the impugned order dated 10.10.2025.

Upon hearing the learned counsel for the petitioner and upon

perusal of the impugned order, it can be seen that where there was a fraudulent availment of ITC from a non-existent taxpayer, the petitioner did not avail the opportunity when the show cause notice and personal hearing notices were uploaded on the web portal. Accordingly, the impugned order came to be passed ex parte .

It is the contention of the petitioner that the show cause notice as

well as the personal hearing notices were uploaded on the web portal and

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W.P.(MD) No.8585 of 2026

that there was no effective physical service or proper intimation. Therefore, since the petitioner failed to notice the same and file a reply, the impugned proceedings came to be passed.

This Court, taking into account the said submission, is of the

view that one more opportunity can be granted to the petitioner, however, on condition that the petitioner pays 25% of the disputed tax amount. This Writ Petition is allowed on the following terms:

i. The petitioner shall pay 25% of the disputed tax amount within a period of four weeks from the date of receipt of a web copy of this order.

ii. Upon such payment, the impugned order dated 10.10.2025 shall stand set aside and the matter shall stand remitted back to the file of the first respondent.

iii. The petitioner shall appear before the first respondent without fail and file a reply and produce such documentary evidence in support of his claim.

iv. The first respondent shall pass fresh orders in accordance with law, as expeditiously as possible.

v. Since the impugned order is set aside and the matter is remanded back for fresh consideration upon payment of 25% of the tax liability, the freezing of the petitioner's bank account shall stand lifted.

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W.P.(MD) No.8585 of 2026

vi. No costs. Consequently, the connected Miscellaneous Petitions are closed.

30.03.2026

JEN

Neutral Citation : No

To

1.The Assistant Commissioner (ST), Tirunelveli Junction Assessment Circle, Commercial Tax Offices,

1^st Floor, New Bus Stand, Tirunelveli.

2.The Assistant Manager, HDFC Bank Limited, Vannarapettai Branch, No.341/2, North Bye Pass Road, BGS Towers, Vannarapettai, Tirunelveli - 627 002.

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W.P.(MD) No.8585 of 2026

D.BHARATHA CHAKRAVARTHY, J.

JEN

W.P.(MD) No.8585 of 2026

30.03.2026

(3/3)

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