Tvl. Vijayalakshmi Forgings Vs the Assistant… — GST and Indirect Tax | Madras HC (2026)

Tvl. Vijayalakshmi Forgings Vs the Assistant… — GST and Indirect Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of at admission with consent; impugned order dated 18.08.2025 treated as an addendum to the SCN in GST DRC-01 dated 06.06.2025; case remitted to the respondent for a fresh order on merits subject to pre-deposit of 25% of the disputed tax within 30 days along with a reply and documents; final order preferably within 3 months; bank account attachment vacated on compliance and absence of other arrears; failure to comply permits recovery as if the writ was dismissed in limine; no costs; connected Writ Miscellaneous Petitions closed.

Issue for consideration

Whether the impugned order dated 18.08.2025 passed by the respondent should be quashed by issuance of a writ of certiorari under Article 226 of the Constitution. +1 more

Court's answer

Within the deposit period the Petitioner shall file a reply to the Show Cause Notice in GST DRC-01 dated 06.06.2025 with requisite documents, treating the impugned order dated 18.08.2025 as an addendum to that Show Cause Notice.

Ratio / Principle

In similar circumstances this Court's practice has been to quash orders and remit cases to the respondent for a fresh order on terms of the assessee depositing 25% to 100% of the disputed tax depending on the length of delay in approaching the Court; the judge found no reason to take a different view here.

Key takeaways

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 25% of the disputed tax in cash or from the Electronic Cash Register within thirty (30) days of receipt of a copy of the order.ratio¶34
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 months of such reply/pre-deposit, and the attachment of the Petitioner's bank account shall stand automatically vacated.ratio¶36
Bank attachment shall be lifted subject to the Petitioner depositing 25% of the disputed tax as ordered and the Petitioner not being in arrears of any other amount for any other tax period barring the demand under the impugned order.

Detailed headnote1 paragraphs

Writ Petition (Article 226, certiorari) by an assessee against a GST demand order dated 18.08.2025 (Ref, No.ZD3308251636074, GSTIN:33AHAPV1307L1ZG) passed by the Assistant Commissioner (ST), Palladam -II Assessment Circle, after a Show Cause Notice in GST DRC-01 dated 06.06.2025 for which the assessee did not attend personal hearing. With the Section 107 appeal limitation already expired and the petition filed on 02.02.2026, and counsel offering a 25% pre-deposit, the Madras High Court (C. Saravanan J.), following its consistent practice of remitting like cases on deposit of 25% to 100% of the disputed tax depending on the delay, disposed of the petition: the impugned order was to be treated as an addendum to the SCN; the assessee to deposit 25% of the disputed tax in cash or from its Electronic Cash Register within 30 days and file a reply with documents; on compliance the respondent to pass a fresh final order on merits, preferably within 3 months; bank attachment automatically vacated subject to compliance and no other tax arrears; non-compliance entitled the Revenue to recover as if the writ were dismissed in limine; due notice to precede any such order. No costs; connected W.M.Ps. closed.

WP No. 3755 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04-02-2026

CORAM

THE HON'BLE MR JUSTICE C. SARAVANAN

WP No. 3755 of 2026 and W.M.P. Nos.4180 & 4181 of 2026

Tvl. VIJAYALAKSHMI FORGINGS, Represented by its Proprietor, S.F. No.98/1B, Arasampalayam, Kinathukadavu, Coimbatore -641 201.

..Petitioner(s)

Vs

The Assistant Commissioner (ST) O/o. the Assistant Commissioner, Palladam, -II, Assessment Circle, Tirupur-641 664.

..Respondent(s)

PRAYER - Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari calling for the entire records connected with the impugned order of the Respondent and his proceedings in Ref, No.ZD3308251636074 in GSTIN:33AHAPV1307L1ZG dated 18.08.2025 and quash the same.

For Petitioner(s):

Mr. A. Arun

For Respondent(s): Mr.C.Harsharaj, Special Government Pleader

O R D E R

Mr.C.Harsharaj, learned Special Government Pleader takes notice for the

Respondent.

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WP No. 3755 of 2026

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 Special Government Pleader for the Respondent.

3.In this Writ Petition, the Petitioner has challenged the impugned Order

dated 18.08.2025, which was preceded by a Show Cause Notice in GST DRC-01 dated 06.06.2025 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 18.08.2025.

4.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 02.02.2026.

At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 25% of the disputed tax as a condition for denovo adjudication.

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.

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WP No. 3755 of 2026

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 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 06.06.2025 together with requisite documents to substantiate the case by treating the impugned Order dated 18.08.2025 as an addendum to the Show Cause Notice dated 06.06.2025.

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 Petitioner depositing 25% of the disputed tax as ordered above and the Petitioner not being in arrears of any other amount for any other tax period barring the amount demanded under the impugned Order.

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WP No. 3755 of 2026

C.SARAVANAN J.

GSA

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.

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

04-02-2026

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

(2/2)

GSA

To

The Assistant Commissioner (ST) O/o. the Assistant Commissioner, Palladam, -II, Assessment Circle, Tirupur-641 664.

WP No. 3755 of 2026 and W.M.P. Nos.4180 & 4181 of 2026 (2/2)

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