M/S.Markers Spot Solutions vs. The Principal Chief Commissioner Of CGST And Central Excise

This Writ Petition is taken up for final hearing at the time of admission with the consent of the learned counsel for the petitioner and learned Senior Standing Counsel for the respondents.

The petitioner is before this Court against the impugned Order-in- 2/7 https://www.mhc.tn.gov.in/judis Original dated 03.02.2025, bearing reference in MAD-GST-AC-06/2025 and consequential Summary Order in FORM GST DRC 07 dated 04.02.2026, whereby a part of demand proposed in the Show Cause Notice dated 29.12.2023 bearing referenec in No.104/2023-GST has been confirmed and the payment made by the petitioner has also been appropriated.

The learned counsel for the petitioner submits that the impugned order has wrongly recorded that the petitioner had not filed any reply to the Show Cause Notice and therefore, the impugned order is liable to be interfered with under Article 226 of the Constitution of India.

A reading of the Impugned Order indicates that there is no discussion regarding the reply filed by the petitioner, barring the appropriation of the amount paid by the petitioner. However, a perusal of the Impugned Order indicates that the petitioner had admitted the tax liability and had paid a part of the tax liability, but had failed to pay the balance amount. As such, this Writ Petition is liable to be dismissed on account of laches. 3/7 https://www.mhc.tn.gov.in/judis

However, considering the fact that the petitioner had not given a proper reply, I am inclined to remit the case back to the third respondent insofar as the demand that has been confirmed by the impugned order, subject to the petitioner depositing 25% of the disputed tax in cash 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.

At this stage, the learned counsel for the petitioner has also made an endorsement to the effect in the Court bundle, stating that the petitioner will deposit 25% of the disputed tax as follows, which stands recorded: “On behalf of the petitioner, the 25% of disputed tax is accepted to be paid and the matter is remanded back accordingly.”

Within such time, the petitioner shall also file a proper reply to the Show Cause Notice dated 29.12.2023 together with requisite documents to substantiate the case by treating the Impugned Order dated 03.02.2025 as an addendum to the Show Cause Notice dated 29.12.2023. 4/7 https://www.mhc.tn.gov.in/judis

In case the petitioner complies with the above stipulation, the impugned order, insofar as confirming the demand on the balance of the disputed tax, shall stand quashed and the matter is remitted back to the third respondent to pass a fresh order in lieu of the impugned 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.

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 third respondent shall give due notice to the petitioner.

This Writ Petition stands disposed of, with the above observations. No costs. Consequently, connected Writ Miscellaneous Petitions are closed. Index : Yes / No 17.08.2026 Internet : Yes / No apd 5/7 https://www.mhc.tn.gov.in/judis To 1. The Principal Chief Commissioner of CGST and Central Excise, Chennai Zone, 26/1, Mahatma Gandhi Road, Nungambakkam, Chennai - 600 034. 2. The Commissioner of CGST and Central Excise, Madurai Commissionerate, Central Revenue Building, No. 4, Lal Bahadur Shastri Road, Bibikulam, Madurai - 625 002. 3. The Assistant Commissioner of CGST and Central Excise, Madurai-1 Division, No. 5, V.P. Rathinasamy Nadar Road, Bibikulam, Madurai - 625 002. 6/7 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.

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