M/s Team and sons Vs The Deputy Commissioner St — GST and Indirect Tax | Madras HC (2026)

M/s Team and sons Vs The Deputy Commissioner St — GST and Indirect Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed at admission by consent: case remitted to the second respondent for a fresh/final order on merits subject to pre-deposit of 15% of the disputed tax within thirty (30) days and a reply to the GST DRC-01 Show Cause Notice dated 18.05.2025 (impugned Order dated 17.08.2024 treated as addendum); final order preferably within three months with due notice; bank attachment to stand automatically vacated/lifted on compliance and absence of other arrears; on default, respondents free to recover tax as if the writ were dismissed in limine; no costs; connected W.M.P.Nos.9577 & 9578 of 2026 closed.

Issue for consideration

Whether the petitioner, whose statutory appeal was rejected after expiry of the Section 107 limitation, could obtain relief by way of remittal to the assessing authority for a fresh (de novo) adjudication conditioned on pre-deposit of 15% of the disputed tax.

Court's answer

Recording the petitioner's consent endorsement, the court remitted the case back to the second respondent to pass a fresh order on merits, subject to the petitioner depositing 15% of the disputed tax in cash or from the petitioner's Electronic Cash Register within thirty (30) days from receipt of a copy of the order.

Ratio / Principle

Within the thirty-day period the petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 18.05.2025 with requisite documents, treating the impugned Order dated 17.08.2024 as an addendum to that Show Cause Notice.

Key takeaways

On the petitioner's compliance with the stipulations, the second 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¶40
Subject to the petitioner complying with the stipulations, any attachment of the petitioner's bank account shall stand automatically vacated.ratio¶41
Bank attachment shall be lifted subject to the petitioner depositing 15% of the disputed tax as ordered and the petitioner not being in arrears of any other amount for any other tax period, barring the amount demanded under the impugned Order.

Detailed headnote1 paragraphs

M/s. Team and Sons (prop. Mr. Dinesh Kumar) filed W.P.No.8880 of 2026 under Article 226 seeking a Writ of Certiorarified Mandamus against (i) the rejection by Memorandum Rc.No.206/2025/A1 dated 06.11.2025 of the Deputy Commissioner (ST), GST Appeal, of its statutory appeal dated 27.01.2025 filed under the Tamil Nadu GST Act against a demand order of the Deputy Commercial Tax Officer, Surapattu Assessment Circle, in Reference No. ZD330824147591 dated 17.08.2024, and (ii) that demand/assessment order itself, which had been preceded by a GST DRC-01 Show Cause Notice dated 18.05.2025 to which the petitioner had not responded. Noting that the Section 107 limitation had long expired and that the writ was filed only on 02.03.2026, the Court disposed of the petition at the admission stage with consent, recording the petitioner's endorsement to pre-deposit 15% of the disputed tax. The case was remitted to the second respondent for a fresh order on merits, conditional on: deposit of 15% of the disputed tax within thirty days in cash or from the petitioner's Electronic Cash Register; a reply to the DRC-01 notice dated 18.05.2025 treating the 17.08.2024 order as an addendum; a final order on merits preferably within three months, with due notice; automatic vacation/lifting of any bank attachment on compliance and absence of arrears for other tax periods; failing which recovery could proceed as if the writ had been dismissed in limine. No costs; connected W.M.Ps. closed.

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 10.03.2026

CORAM

THE HON'BLE MR JUSTICE C. SARAVANAN

W.P.No.8880 of 2026 and

W.M.P.Nos.9577 & 9578 of 2026

M/s. Team and Sons Rep. By its prop. Mr. Dinesh Kumar, No. 162-A, Adinath Trade Complex, Adinath Nagar, 200 ft Road, Madhavaram, Chennai - 600060.

..Petitioner

Vs

The Deputy Commissioner (ST), GST Appeal, Chennai – 1, 2nd Floor, Greams Road, Chennai - 600 006.

The Deputy Commercial Tax Officer, Surapattu Assessment Circle, 1st Floor, Integrated Commercial Tax Buildings No. 32, Elephant Gate Bridge, Chennai - 600 003.

..Respondents

PRAYER: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, calling for the records relating to Memorandum vide Rc.No.206 /2025/A1 dated 06.11.2025 passed by the 1^st Respondent and order in Reference No. ZD3308241417591 dated 17.08.2024 passed by the 2nd Respondent and quash the same and to direct the l st Respondent to accept the statutory appeal dated 27.01.2025 filed under Tamil Nadu GST Act, 20I7 against demand order of the 2d Respondent in Reference No. ZD330824147591 dated 17.08.2024 without reference to

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limitation and pass such further or other orders as this Hon’ble Court may deem fit in the circumstances of the case and thus render justice.

For Petitioner : Mr.Hariharan. V For Respondents : Mr.C.Harsharaj, Special Government Pleader.

ORDER

Mr.C.Harsharaj, Special Government Pleader, learned Special

Government Pleader takes notice for the Respondents.

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 Respondents.

In this Writ Petition, the Petitioner has challenged the impugned rejection Order dated 06.11.2025 passed by the 1^st respondent, and the impugned assessment Order dated 17.08.2024, which was preceded by a Show Cause Notice in GST DRC-01 dated 18.05.2025 wherein the Petitioner was called upon to file a reply and to appear for a personal hearing. However, the Petitioner did not take advantage of the same and has thus suffered the impugned Order dated 17.08.2024.

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

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expired long before. However, the present Writ Petition has been filed only on 02.03.2026.

At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 15% of the disputed tax as a condition for denovo adjudication.

The learned counsel for the Petitioner has also made an following

endorsement to that effect in the Court bundle which has been extracted

hereunder:-

“The petitioner will deposit 15% of disputed tax amount.”

Recording the above consent given by the petitioner, the case is

remitted back to the second Respondent to pass a fresh order on merits subject to the Petitioner depositing 15% 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 18.05.2025 together with requisite documents to substantiate the case by treating the impugned Order dated

17.08.2024 as an addendum to the Show Cause Notice dated 18.05.2025.

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In case the Petitioner complies with the above stipulations, the second

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.

It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 15% 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.

In case the Petitioner fails to comply with any of the stipulations, the Respondents are 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 second Respondent shall give due notice to the Petitioner.

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

10.03.2026

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

The Deputy Commissioner (ST), GST Appeal, Chennai – 1, 2nd Floor, Greams Road, Chennai - 600 006.

The Deputy Commercial Tax Officer, Surapattu Assessment Circle, 1st Floor, Integrated Commercial Tax Buildings No. 32, Elephant Gate Bridge, Chennai - 600 003.

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C.SARAVANAN, J.

kmm

W.P.No.8880 of 2026

10.03.2026

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