A G Shijo Vs The State Tax Officer — GST and Indirect Tax | Madras HC (2026)

A G Shijo Vs The State Tax Officer — GST and Indirect Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of with directions and no costs: petitioner to file a reply to the Show Cause Notice dated 31.07.2024 with documents treating the impugned order dated 16.09.2025 as an addendum, subject to pre-deposit of 25% (amounts already recovered towards tax liability to be adjusted towards the pre-deposit, subject to verification); on compliance, respondent to pass final order on merits preferably within three months of the reply/pre-deposit and any attachment of the petitioner's bank account to stand automatically vacated; on failure, respondent at liberty to recover tax as if the writ petition was dismissed in limine, with due notice before any such order. Connected Writ Miscellaneous Petitions closed.

Issue for consideration

Whether the writ petition under Article 226 challenging the assessment order dated 16.09.2025, confirming under Section 73 of the CGST Act, 2017 the proposal in FORM GST DRC-01 dated 31.07.2024 in absence of a reply to the show cause notice, should be entertained when the limitation for appeal under Section 107 has already expired. +1 more

Court's answer

The writ petition is disposed of at the stage of admission itself, with the consent of learned counsel for the petitioner and the learned Government Advocate for the respondent.

Ratio / Principle

The petitioner is to file a reply to the Show Cause Notice in FORM GST DRC-01 dated 31.07.2024 together with requisite documents, treating the impugned order dated 16.09.2025 as an addendum to the show cause notice.

Key takeaways

Any amount recovered from the petitioner towards the tax liability shall be adjusted towards the aforesaid pre-deposit of 25%, subject to verification by the respondent.ratio¶¶31
On compliance with the stipulations, the respondent shall pass a final order on merits and in accordance with law as expeditiously as possible, preferably within three (3) months of such reply/pre-deposit.ratio¶¶32
Subject to the petitioner complying with the stipulations, any attachment of the petitioner's bank account shall stand automatically vacated.

Detailed headnote1 paragraphs

Madras High Court (C. Saravanan, J.) disposed of, at admission and with consent of counsel, a writ petition under Article 226 of the Constitution of India seeking certiorari to quash an assessment order bearing reference GSTIN 33BCYPS0103B1ZX/2021-22 dated 16.09.2025, by which the State Tax Officer confirmed, under Section 73 of the CGST Act, 2017, the proposal in Show Cause Notice in FORM GST DRC-01 dated 31.07.2024 for the tax period April 2021 - March 2022, no reply having been filed; the appeal under Section 107 was time-barred, the writ having been filed on 18.03.2026. Directions: (i) petitioner to file a reply to the DRC-01 show cause notice with requisite documents, treating the impugned order as an addendum to it; (ii) amounts already recovered from the petitioner towards tax liability to be adjusted towards the pre-deposit of 25%, subject to verification by the respondent; (iii) on compliance, respondent to pass a final order on merits and in accordance with law, preferably within three (3) months of the reply/pre-deposit, and any attachment of the petitioner's bank account to stand automatically vacated; (iv) respondent to give due notice before passing any such order; (v) on failure to comply, respondent at liberty to recover the tax as if the writ petition was dismissed in limine. No costs; connected WMP Nos.12646 & 12647 of 2026 closed.

1 WP No. 11597 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 25-03-2026

CORAM

THE HONOURABLE MR JUSTICE C. SARAVANAN

WP No. 11597 of 2026 and WMP Nos.12646 & 12647 of 2026

A G Shijo Sole Proprietor of Legend Electricals, No 60/130 Navaneedhan Complex, Purasawakkam High Road, Purasawakkam, Chennai 600 007

Petitioner(s)

Vs

The State Tax Officer Group -III, Intelligence -I, Chennai-600 006.

Respondent(s)

PRAYER

Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, calling for records leading to the issuance of assessment order bearing reference GSTIN 33BCYPS0103B1ZX/2021-22 dated 16.09.2025 passed by the Respondent and quash the same.

For Petitioner(s): Ms. Chandrika B

For Respondent: Mrs.P.Selvi Government Advocate

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ORDER

Mrs. P.Selvi, 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 for the Respondent.

3.The petitioner before this court against the Impugned Order dated 16.09.2025 whereby the proposal in Show Cause Notice in FORM GST DRC-01 dated 31.07.2024 issued for the tax period April 2021 - March 2022 has been confirmed under Section 73 of the CGST Act, 2017 in absence of a reply to the said Show Cause Notice.

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 18.03.2026.

5.The learned counsel for the Petitioner submits that almost 25% disputed tax has been recovered/paid for from the Petitioner’s Electronic Credit Ledger and Cash Ledger. The learned counsel for the respondent is however unable to

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confirm the same. The learned counsel for the petitioner submits that the petitioner was substantiate the same before the respondent.

Within such time, the Petitioner shall also file a reply to the Show Cause Notice in FORM GST DRC-01 dated 31.07.2024 together with requisite documents to substantiate the case by treating the impugned Order dated 16.09.2025 as an addendum to the Show Cause Notice dated 31.07.2024

7.Needless to state, any amount recovered from the Petitioner towards the

tax liability shall be adjusted towards the aforesaid pre-deposit of 25% as ordered above. This will be however subject to verification by the Respondent.

In case the Petitioner complies with the above stipulations, the 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 reply/pre-deposit. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner if any, shall also stand automatically vacated.

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.

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Needless to state, before passing any such order, the Respondent shall

give due notice to the Petitioner.

11.This Writ Petition stands disposed of with the above observations. No

costs. Connected Writ Miscellaneous Petitions are closed.

25-03-2026

Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No kp

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WP No. 11597 of 2026

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To

The State Tax Officer Group -III, Intelligence -I, Chennai-600 006

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WP No. 11597 of 2026

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C.SARAVANAN J.

kp

WP No. 11597 of 2026

25-03-2026

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