Tvl Chakravarthy Clothing Vs The Assistant Commissioner — GST and Indirect Tax | Madras HC (2026)

Tvl Chakravarthy Clothing Vs The Assistant Commissioner — GST and Indirect Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of at admission, with consent, with observations and no costs; connected WMP Nos. 1702 and 1703 of 2026 closed. Impugned DRC-07 order dated 23.08.2024 to be treated as addendum to the SCN dated 11.09.2023; case remitted to the respondent for a fresh order on merits subject to the petitioner depositing 50% of the disputed tax in cash from the Electronic Cash Register within 30 days and filing a reply with documents; fresh final order preferably within 3 months; bank attachment to stand automatically vacated/lifted subject to the deposit and no arrears for other tax periods; failing compliance, recovery permitted as if the writ was dismissed in limine; due notice before any fresh order.

Issue for consideration

Whether the impugned Form GST DRC-07 order dated 23.08.2024 (Ref. No. ZD330824213615I) for FY 2019-20, passed without the petitioner filing a reply or attending personal hearings, should be quashed and the case remitted for de novo adjudication subject to conditions. +1 more

Court's answer

To balance the interests of the assessee and the Revenue, the case is remitted back to the respondent to pass a fresh order on merits, subject to the petitioner depositing 50% of the disputed tax in cash from the petitioner's Electronic Cash Register within thirty (30) days from receipt of a copy of the order.

Ratio / Principle

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

Key takeaways

Within that time, the petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 11.09.2023 together with requisite documents to substantiate the case.ratio¶34
The reply and documents are to be submitted by treating the impugned Order dated 23.08.2024 as an addendum to the Show Cause Notice dated 11.09.2023.ratio¶38
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 such reply/pre-deposit.

Detailed headnote1 paragraphs

Madras High Court (C. Saravanan, J.) disposed of a writ petition under Article 226 challenging a Form GST DRC-07 order dated 23.08.2024 (Ref. No. ZD330824213615I) for FY 2019-20, which was preceded by a DRC-01 show cause notice dated 11.09.2023 and reminders dated 25.07.2024 and 14.08.2024 that the petitioner ignored, neither replying nor attending personal hearings fixed for 29.07.2024 and 16.08.2024. With the limitation for appeal under Section 107 of the respective GST enactments, 2017 already expired (petition filed 24.12.2025) and counsel offering a 50% pre-deposit, the court, consistent with its practice of quashing and remitting such cases subject to deposits of 25%-100% of disputed tax scaled to delay, remitted the matter to the respondent for a fresh order on merits: petitioner to deposit 50% of disputed tax in cash from the Electronic Cash Register within 30 days and file a reply with documents treating the impugned order as an addendum to the SCN; fresh final order preferably within 3 months; bank attachment automatically vacated/lifted on compliance and absence of arrears for other periods; non-compliance permits recovery as if the writ were dismissed in limine; due notice before any fresh order; no costs; connected miscellaneous petitions closed.

WP No. 1653 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 27-01-2026

CORAM

THE HON'BLE MR JUSTICE C. SARAVANAN

WP No. 1653 of 2026

AND

WMP NO. 1702 OF 2026,WMP NO. 1703 OF 2026

Tvl Chakravarthy Clothing Represented by its proprietor Abdulazeez Sabarabanu, No. 288, Sharadha College Road, Fair Lands, Salem, Tamil Nadu- 636016

..Petitioner(s)

Vs

The Assistant Commissioner Alagapuram Circel Salem I, Salem, Tamil nadu

..Respondent(s)

PRAYER

Writ Petition filed under Art. 226 of Constitution of India seeking for issuance of Writ of Certiorari, to call for records relating to the Order dated 23.08.2024 passed by the Respondent vide Reference No. ZD330824213615I and quash the same.

For Petitioner(s): Ms. Sowjanya S For Respondent(s): Mr.V.Prashanth Kiran, Government Advocate.

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WP No. 1653 of 2026

ORDER

Mr.V.Prashanth Kiran, learned Government Advocate takes notice for the Respondent.

2.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.In this Writ Petition, the Petitioner has challenged the impugned Order dated 23.08.2024 in Form GST DRC-07 passed for the financial year 20192020, which was preceded by a Show Cause Notice in GST DRC-01 dated 11.09.2023, 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 23.08.2024.

4.The Petitioner was also issued with Reminders on 25.07.2024 and 14.08.2024, which called upon the Petitioner to file a reply and to appear for a personal hearing on 29.07.2024 and 16.08.2024. The Petitioner however neither filed any reply nor appeared for the personal hearing fixed on 29.07.2024 and 16.08.2024. Thus, the impugned Order has been passed.

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WP No. 1653 of 2026

5.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.

At this stage, the learned counsel for the Petitioner submits that the

Petitioner is willing to pre-deposit 50% of the disputed tax as a condition for denovo adjudication.

7.Under similar circumstances, Orders have been quashed and cases have been remitted back to the Respondent 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 on merits subject to the Petitioner depositing 50% 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.

9.Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 11.09.2023 together with requisite

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WP No. 1653 of 2026

documents to substantiate the case by treating the impugned Order dated 23.08.2024 as an addendum to the Show Cause Notice dated 11.09.2023.

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 shall also stand automatically vacated.

It is made clear that bank attachment shall be lifted subject to the deposit of 50% of the disputed tax as ordered above and the Petitioner is not being in arrears of any other amount for any other tax period 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.

It is needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.

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WP No. 1653 of 2026

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

costs. Connected Writ Miscellaneous Petitions are closed.

27-01-2026

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

RPP

To

The Assistant Commissioner Alagapuram circle, Salem I, Salem, Tamilnadu

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WP No. 1653 of 2026

C.SARAVANAN J.

RPP

WP No. 1653 of 2026 AND WMP NO. 1702 OF 2026,WMP NO. 1703 OF 2026

27-01-2026

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