Velan Hotels Ltd. Vs The Government of Tamilnadu — Motor Accident Claims | Madras HC (2026)

Velan Hotels Ltd. Vs The Government of Tamilnadu — Motor Accident Claims | Madras HC (2026)

What the court decided

AI extract

Outcome

Liberty to file an Appeal before the Appellate Authority within 30 days from receipt of a copy of the order; recovery proceedings kept in abeyance for 60 days with the Petitioner to secure any further stay of recovery from the Appellate Authority; Writ Petition and connected Writ Miscellaneous Petitions closed with no costs.

Issue for consideration

Whether the assessment notice and consequent demand (Form B-3) and demand of penalty (Form-54) dated 29.01.2026 in TNGST/2401042 for Assessment year 2006-07 should be quashed as illegal, arbitrary, without jurisdiction and barred by limitation under Section 8(5) of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 (pleaded in the prayer; not adjudicated by this court, left to the Appellate Authority). +1 more

Court's answer

This Writ Petition is disposed of at the admission stage itself with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondents.

Ratio / Principle

Recording the Petitioner's request and endorsement, the Writ Petition is closed with liberty to file an Appeal against the impugned order before the Appellate Authority within a period of 30 days from the date of receipt of a copy of this order.

Key takeaways

The recovery proceedings shall be kept in abeyance for a period of 60 days from today.ratio¶27
After the 60-day abeyance, it is for the Petitioner to secure an appropriate order from the Appellate Authority to stay further recovery.ratio¶31

Detailed headnote1 paragraphs

Madras High Court (Justice C. Saravanan), WP No. 8576 of 2026 with connected WMP No. 9256 of 2026, decided 04-03-2026. Velan Hotels Ltd, rep. by its Managing Director M.R. Gauthaman, sought a writ of certiorari under Article 226 to quash the proceedings dated 29.01.2026 in TNET/TNGST No.2401042/2006-07 - the notice of assessment and consequent demand (Form B-3) and demand of penalty (Form-54) in TNGST/2401042 for Assessment year 2006-07 issued by the Assistant Commissioner (CT), Central 1 Assessment Circle, Tiruppur - as illegal, arbitrary, without jurisdiction and barred by limitation under Section 8(5) of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990. At the admission stage, with the consent of counsel on both sides, the court did not adjudicate the merits: it recorded the petitioner's request and endorsement, granted liberty to file an appeal before the Appellate Authority within 30 days of receipt of a copy of the order, kept recovery proceedings in abeyance for 60 days, and directed that any further stay of recovery be obtained from the Appellate Authority. The Writ Petition and connected miscellaneous petitions were closed without costs.

WP No. 8576 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04-03-2026

CORAM

THE HON'BLE MR JUSTICE C. SARAVANAN

WP No. 8576 of 2026 AND WMP NO. 9256 OF 2026

Velan Hotels Ltd

rep by its Managing Director, Mr.M.R. Gauthaman, No.41, Kangeyam Road, Tiruppur-641 604.

..Petitioner(s)

Vs

The Government of Tamilnadu Commercial Taxes Rep by its Secretary, Government of Tamil Nadu, Secretariat, Fort St. Georg Chennai- 600 009.

The Assistant Commissioner (CT) Central 1 Assessment Circle, Emperor building, 16, Indira Nagar 1st street, Avinash Road, Tiruppur-641 603, Tamil Nadu.

..Respondent(s)

PRAYER :Writ Petition is filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari to call for the records of the 2nd Respondent proceedings dated 29.01.2026 in TNET/TNGST No.2401042/2006-07, notice of assessment and consequent demand (Form B-3) and demand of penalty (Form-54) in TNGST/2401042/Assessment year 2006-07 to quash the same as illegal, arbitrary, without jurisdiction and barred by limitation under Section 8(5) of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990.

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WP No. 8576 of 2026

For Petitioner(s): Mr.B.Ravi Raja For Respondent(s): Mr.V.Prashanth Kiran, GA

ORDER

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

This Writ Petition is disposed of at the admission stage itself with the

consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondents.

The Petitioner at this stage seeks liberty to file an Appeal against the impugned order before the Appellate Authority

Learned Counsel for the Petitioner has also made an endorsement to that effect.

Recording the above request and endorsement, this Writ Petition is

closed with liberty to file an Appeal before the Appellate Authority within a period of 30 days from the date of receipt of a copy of this order.

The recovery proceedings shall be kept in abeyance for a period of 60 days from today.

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WP No. 8576 of 2026

It is for the Petitioner to secure an appropriate order from the Appellate Authority to stay further recovery thereafter.

This Writ Petition stands closed with the above liberty. No costs.

Connected Writ Miscellaneous Petitions are closed.

04-03-2026

Neutral Citation: Yes/No GV

To

The Government of Tamilnadu Commercial Taxes Rep by its Secretary, Government of Tamil Nadu, Secretariat, Fort St. George Chennai- 600 009.

The Assistant Commissioner (CT) Central 1 Assessment Circle, Emperor building, 16, Indira Nagar 1st street, Avinash Road, Tiruppur-641 603, Tamil Nadu.

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WP No. 8576 of 2026

C.SARAVANAN J.

GV

WP No. 8576 of 2026 AND WMP NO. 9256 OF 2026

04-03-2026

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