Tvl.Royal Paints Vs The Assistant Commissioner (St) — GST and Indirect Tax | Madras HC (2026)

Tvl.Royal Paints Vs The Assistant Commissioner (St) — GST and Indirect Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ Petition disposed of with liberty to file an appeal before the Appellate Authority, conditioned on deposit of 25% of the disputed tax within 30 days; on compliance, appeal to be entertained on merits without reference to limitation and bank account attachment to stand automatically vacated; on non-compliance, authorities free to proceed as if the petition was dismissed in limine. No costs; connected Writ Miscellaneous Petitions closed.

Issue for consideration

Whether a petitioner who failed to avail the statutory appeal under Section 107 within limitation should be relegated to the appellate remedy (with a conditional pre-deposit) rather than having the impugned GST DRC-07 order quashed under Article 226.

Court's answer

Balancing the interests of the Petitioner and the Revenue and considering counsel's endorsement, the Court granted liberty to the Petitioner to file an appeal before the Appellate Authority, disposing of the Writ Petition subject to deposit of 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 / Principle

Upon compliance with the deposit stipulation, the Appellate Authority shall entertain the appeal and dispose of it on merits, without reference to limitation, on its own turn after hearing the Petitioner.

Key takeaways

On compliance with the stipulation, any attachment of the Petitioner's bank account shall stand automatically vacated.ratio¶37
In case of failure to comply with the deposit stipulation, the Authorities under the Act are at liberty to proceed against the Petitioner in accordance with law as if the Writ Petition was dismissed in limine.ratio¶42

Detailed headnote1 paragraphs

Madras High Court (Madurai Bench), single Judge (C. Saravanan, J.) — Writ Petition under Article 226 seeking Certiorari against FORM GST DRC-07 order dated 24.12.2025 (Tax Period 2021-22) passed by the Assistant Commissioner (ST), Kamarajar Salai Assessment Circle, Madurai, confirming the proposal in SCN GST DRC-01 dated 29.09.2025. The State relied on Supreme Court decisions (Singh Enterprises (2008) 3 SCC 70; Hongo India (2009) 5 SCC 791; Glaxo Smith Kline 2020 SCC OnLine SC 440) to contend the appeal window under Section 107 had lapsed. Balancing interests and noting counsel's endorsement to pay 25% of the disputed tax, the Court disposed of the petition granting liberty to appeal before the Appellate Authority, subject to deposit of 25% of the disputed tax in cash or from the Electronic Cash Register within 30 days; on compliance, the appeal is to be entertained on merits without reference to limitation and any bank account attachment stands automatically vacated; on failure, authorities may proceed as if the writ was dismissed in limine. No costs; connected WMPs closed.

W.P.(MD) No. 20563 of 2026

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

DATED : 21.07.2026

CORAM:

THE HON'BLE MR.JUSTICE C.SARAVANAN

W.P.(MD)No.20563 of 2026

Tvl.Royal Paints, Represented by its Partner M.Nallathambi

... Petitioner

Vs.

The Assistant Commissioner (ST), Kamarajar Salai Assessment Circle, Madurai.

... Respondent

Prayer : Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, to call for the records pertaining to the impugned order passed by the Respondent vide his order in FORM GST DRC-07 GSTIN: 33AAFFR4153C1ZN dated 24.12.2025 (Tax Period 2021-22) and quash the same as it is illegal, without jurisdiction and in gross violation of Principles of Natural Justice.

For Petitioner : Mr.A.Satheesh Murugan For Respondent : Mr.R.Parthiban Counsel for the State of Tamil Nadu

ORDER

The Petitioner is before this Court against the Impugned Order dated

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24.12.2025 whereby the proposal in the Show Cause Notice in GST DRC-01 dated 29.09.2025 issued for the Tax Period 2021-2022 has been confirmed after perusing the Petitioner’s Replies dated 09.05.2025 and 05.06.2025 to the aforesaid Show Cause Notice in GST DRC-01.

It is submitted by the learned counsel for the Petitioner that the Petitioner has a fair case on merits and therefore the Petitioner deserves a fresh chance atleast to file an appeal and is willing to workout the remedy before the Appellate Commissioner.

Learned counsel for the Petitioner submits that the Petitioner is willing to

deposit 25% of the disputed tax. He has also made an endorsement to that effect in the Court Bundle which reads as under:-

“The Petitioner is ready to pay 25% of the disputed tax.”

Learned Counsel for the State of Tamil Nadu on the other hand would submit that the Petitioner ought to have filed an appeal within the limitation prescribed under Section 107 of the respective GST Enactments. However, the

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Petitioner has now approached this Court by filing the present Writ Petition to quash the Impugned Order.

It is further submitted that this Writ Petition is liable to be dismissed as the Petitioner has slept over the rights in the light of the decisions of the Hon'ble Supreme Court in Singh Enterprises Vs. Commissioner of Central Excise , Jamshedpur and others , (2008) 3 SCC 70 and in Commissioner of Customs and Central Excise Vs. Hongo India Private Limited and another , (2009) 5 SCC 791 and also in Assistant Commissioner (CT) LTU, Kakinada and others Vs. Glaxo Smith Kline Consumer Health Care Limited , 2020 SCC Online SC 440.

I have considered the arguments advanced by the learned counsel for the Petitioner and the learned counsel for the State of Tamil Nadu, and also perused the materials available on record.

To balance the interest of the Petitioner and the Revenue and taking into consideration the endorsement made by the learned counsel for the Petitioner, I

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W.P.(MD) No. 20563 of 2026

am of the view that, liberty may be granted to the Petitioner to file an appeal before the Appellate Authority to pass a fresh order in lieu of the Impugned Order dated 24.12.2025.

Therefore, this Writ Petition is disposed of by giving liberty to the Petitioner to file an appeal before the Appellate Authority 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.

In case the Petitioner complies with the above stipulation, the Appellate Authority shall entertain the appeal and dispose of the same on merits without reference to limitation on its own turn after hearing the Petitioner and the attachment of the bank account of the Petitioner, if any, shall also stand automatically vacated.

In case the Petitioner fails to comply with the above stipulation, the Authorities under the Act are at liberty to proceed against the Petitioner in

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W.P.(MD) No. 20563 of 2026

accordance with law as if this Writ Petition was dismissed in limine today. No costs. Connected Writ Miscellaneous Petitions are closed.

21.07.2026

Neutral Citation : Yes / No arb

To:

The Assistant Commissioner (ST), Kamarajar Salai Assessment Circle, Madurai.

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C.SARAVANAN, J.

arb

W.P.(MD)No.20563 of 2026

21.07.2026

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