Tvl Pekon India Vs The Commercial Tax Officer — GST and Indirect Tax | Madras HC (2026)

Tvl Pekon India Vs The Commercial Tax Officer — GST and Indirect Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ Petition disposed of at the admission stage, with consent, and with the above observations: the case remitted back to the respondent for a fresh order subject to pre-deposit of 25% of the disputed tax (cash or Electronic Cash Register) within 30 days and a reply to the GST DRC-01 SCN of 24.11.2024 (impugned order treated as its addendum); on compliance, final order preferably within 3 months of the pre-deposit and automatic vacation of the bank-account attachment; recoveries already made adjusted towards the 25% pre-deposit; attachment lifting conditional on the deposit and absence of arrears other than the impugned demand; on default, recovery as if the writ were dismissed in limine; due notice to precede any fresh order; no costs; connected Writ Miscellaneous Petitions (WMP Nos. 1313 & 1316 of 2026) closed.

Issue for consideration

Whether the impugned order dated 25.02.2025 (Reference No. ZD3302252523830) issued by the Commercial Tax Officer should be quashed by way of certiorari. +2 more

Court's answer

Within the stipulated time, the petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 24.11.2024, together with requisite documents to substantiate the case.

Ratio / Principle

Under similar circumstances, orders have been quashed and cases remitted back for fresh orders on terms of the assessee depositing 25% to 100% of the disputed tax depending upon the length of delay in approaching the Court; the Court found no reason to take a different view here.

Key takeaways

To balance the interests of the assessee and the Revenue, the case was remitted back to the respondent to pass a fresh order, subject to the petitioner depositing 25% of the disputed tax in cash or from the petitioner's Electronic Cash Register within thirty (30) days from receipt of a copy of this order.ratio¶7
In submitting the reply, the impugned Order dated 25.02.2025 is to be treated as an addendum to the Show Cause Notice dated 24.11.2024.ratio¶8
If the petitioner complies with the stipulations, the respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably within three (3) months of the pre-deposit.

Detailed headnote1 paragraphs

Madras HC, Single Bench (C. Saravanan, J.), decided 19-01-2026 — Tvl Pekon India (Represented by its Partner Debashis Giri) v. The Commercial Tax Officer, Nagapattinam Circle; WP No. 1125 of 2026 & WMP Nos. 1313 & 1316 of 2026. Petition for certiorari to quash the CTO's order Ref. ZD3302252523830 dt. 25.02.2025, which issued after a Show Cause Notice in GST DRC-01 dt. 24.11.2024 whose personal hearing the petitioner did not avail; the limitation for appeal under Section 107 of the respective GST enactments, 2017 had expired by the time the writ was filed on 24.12.2025. Disposed of at admission with consent: following the Court's practice under similar circumstances of quashing and remitting with assessees depositing 25%-100% of the disputed tax scaled to the delay in approaching the Court, the case was remitted to the respondent for a fresh order subject to (i) pre-deposit of 25% of the disputed tax in cash or from the Electronic Cash Register within thirty (30) days of receipt of the order copy, and (ii) a reply to the DRC-01 SCN with requisite documents, treating the impugned order as an addendum to that SCN; on compliance, a final order on merits preferably within three (3) months of the pre-deposit and automatic vacation of the bank-account attachment; amounts already recovered adjusted towards the 25% pre-deposit; lifting of the attachment further conditional on the deposit and absence of arrears other than the impugned demand; on default, recovery in accordance with law as if the writ were dismissed in limine; due notice mandatory before any fresh order. No costs; connected WMPs closed.

WP No. 1125 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 19-01-2026

CORAM

THE HONOURABLE MR JUSTICE C. SARAVANAN

WP No. 1125 of 2026 & WMP Nos.1313 & 1316 of 2026

Tvl Pekon India Represented by its Partner -Debashis Giri, 32, Thiruvengadatha Pillai Street, Nagapattinam, 611 001

Petitioner(s)

Vs

The Commercial Tax Officer Nagapattinam Circle, Commercial Tax Office, Integrated Commercial Taxes Building, No.5, Mayiranathakeela Veethi, ' New Street, Pookollai, Mayiladuthurai-609 001

Respondent(s)

PRAYER

This petition has been filed seeking for issuance of a Certiorari, to call for records pertaining to the original impugned order dated 25.02.2025 bearing Reference No.ZD3302252523830 issued by the Respondent and quash the same.

For Petitioner(s): M/s. G. Derrick Sam For Respondent: Ms.Amritha Poongodi Dinakaran, GA

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WP No. 1125 of 2026

ORDER

Ms.Amritha Poongodi Dinakaran, learned Government Advocate takes

notice for the respondent.

This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the petitioner and the learned Government Advocate appearing for the respondent.

In this Writ Petition, the petitioner has challenged the impugned Order bearing Reference No. ZD3302252523830 dated 25.02.2025 of the respondent, which was preceded by a Show Cause Notice in GST DRC-01 dated 24.11.2024 wherein the petitioner was called upon to appear for personal hearing. However, the petitioner had not taken advantage of the same and thus, suffered the impugned Order dated 25.02.2025.

It is noticed that the limitation for filing an appeal under Section 107 of

the respective GST enactments, 2017 against the impugned order has already expired. The present writ petition has been filed only on 24.12.2025.

5.At this stage, the learned counsel for the petitioner submits that the

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WP No. 1125 of 2026

petitioner is willing to pre-deposit 25% of the disputed tax as a condition for de novo proceedings.

Under similar circumstances, orders have been quashed and cases have been remitted back to pass a fresh order on terms subject to such Assessee depositing 25% to 100% of the disputed tax depending upon the length of delay in approaching the Court. I do not find any reason to take a different view in this case.

Therefore, to balance the interest of both parties viz., the Assessee and the Revenue, 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 or 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.

Within such time, the petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 24.11.2024 together with requisite documents to substantiate the case by treating the impugned Order dated 25.02.2025 as an addendum to the Show Cause Notice dated 24.11.2024.

In case the petitioner complies with the above stipulations, the

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WP No. 1125 of 2026

respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such pre-deposit. Subject to the petitioner complying with the above stipulations, the attachment of the bank account of the petitioner shall also stand automatically vacated.

Any amount already recovered from the petitioner against the tax liability confirmed vide impugned order, shall be adjusted towards the predeposit of 25% as ordered above.

It is made clear that bank attachment shall be lifted subject to the petitioner depositing 25% of the disputed tax as ordered above and the petitioner not being in arrears of any other amount barring the amount demanded under the impugned Order.

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.

Needless to state, before passing any such order, the respondent shall give due notice to the petitioner.

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WP No. 1125 of 2026

This Writ Petition stands disposed of, with the above observations.

No costs. Connected Writ Miscellaneous Petitions are closed.

19-01-2026

dn

Index:Yes/No Neutral Citation:Yes/No

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To

1.The Commercial Tax Officer Nagapattinam Circle, Commercial Tax Office, Integrated Commercial Taxes Building, No.5, Mayiranathakeela Veethi, ' New Street, Pookollai, Mayiladuthurai-609 001

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WP No. 1125 of 2026

C.SARAVANAN, J. dn

WP No. 1125 of 2026

19-01-2026

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