Sri Vinayaga Chemicals vs. The Deputy State Tax Officer-1

Held

The Court quashed the impugned order dated 12.12.2025 passed by the Deputy State Tax Officer-1. The case was remitted back to the first respondent for de novo adjudication. This decision was made conditional upon the petitioner depositing 25% of the disputed tax in cash from their Electronic Cash Register within thirty days of receiving a copy of the order. The petitioner was also directed to file a reply to the Show Cause Notice dated 31.05.2025, along with supporting documents, within the same period, treating the impugned order as an addendum to the Show Cause Notice. The first respondent is to pass a final order on merits and in accordance with law within three months of the petitioner's compliance. Failure to comply with these stipulations would allow the first respondent to proceed with recovery as if the writ petition was dismissed in limine. The Court noted that the limitation for filing an appeal had expired, but proceeded to grant relief based on the petitioner's undertaking.

Facts

The petitioner, Sri Vinayaga Chemicals, represented by its Proprietor, Balamurugan, filed a writ petition before the Madurai Bench of the Madras High Court challenging an order dated 12.12.2025 passed by the Deputy State Tax Officer-1. This order was preceded by a Show Cause Notice dated 31.05.2025. The petitioner had not availed the personal hearing offered in response to the Show Cause Notice, leading to the impugned order. The writ petition was filed on 28.08.2026, after the limitation period for filing an appeal under Section 107 of the respective GST enactments had expired. The petitioner expressed willingness to pre-deposit 25% of the disputed tax.

Key Issues

1. Whether the Court should entertain a writ petition when the statutory remedy of appeal under Section 107 of the GST enactments is available but barred by limitation? Petitioner's contention: The petitioner argued that they were willing to pre-deposit 25% of the disputed tax demand as a condition for de novo adjudication, indicating a willingness to comply with financial obligations. They made an endorsement to this effect. Revenue's contention: The judgment does not record any specific argument from the revenue's side regarding the maintainability of the writ petition or the petitioner's arguments. The Government Advocate (Taxes) took notice for the respondents.