M/S.Avail Solutions Private Limited vs. The Principal Chief Commissioner Of CGST And Central Excise
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Before: and
Mr.R.Gowri Shankar, learned Senior Standing Counsel for GST and Customs, takes notice for the respondents.
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 the learned learned Senior Standing Counsel for GST and Customs for the respondents.
In this Writ Petition, the petitioner has challenged the impugned Assessment Order-in-Original / GST FORM DRC-07 No. 02/2025-GST 2/8 dated 23.09.2025, DIN 20250959X00000000FB7, whereby the proposal in Show Cause Notice in SCN No.103/2023-GST dated 29.12.2023, issued by the Deputy Director, DGGI, Madurai Regional Unit, has been confirmed after recording the admission of the petitioner, which stands captured in the impugned order. The relevant portions are extracted hereunder: “13.Personal Hearing: Personal Hearing Opportunity was granted to the taxpayer on 26.12.2024 or 02.01.2025 or 09.01.2025. Shri Rajesh Kannan, Managing Direction, appeared on 02.01.2025 and requested time to pay the remaining tax amount and assured to file a reply within a week time and the taxpayer submitted reply dated 11.01.2025 wherein he requested that the issues raised in the SCN should be considered under Section 73 of the CGST Act, 2017 rather than Section 74.” 4.The order itself records that the petitioner has paid part of the tax liability amounting to Rs.16,36,360/- out of total liability of Rs.25,06,556/-. Consequently, the petitioner has been asked to pay interest under Section 50(1) of the CGST/TNGST Act, 2017, on belated payment of tax, apart from the balance tax. The impugned order has dropped the demand of penalty under Sections 122(1)(iii) and (x) and 3/8 122(2)(a) of CGST/TNGST Act, 2017, in terms of Section 75(13) of CGST/TNGST Act, 2017, read with Section 20 of IGST Act, 2017. The relevant portion reads as under: “......Therefore, I have no other go except to demand of interest under Section 50(1) of the CGST/TNGST Act, 2017 read with Section 20 of IGST Act, 2017 and imposition of penalty under Section 122(2)(b) of the CGST/TNGST Act, 2017 read with Section 20 of IGST Act, 2017 against the taxpayer on the demand confirmed above. Accordingly, I confirmed the demand of interest and penalty from the taxpayer as proposed in the notice. However, I drop the demand of penalty under Sections 122(1)(iii) and (x) and 122(2)(a) of CGST/TNGST Act, 2017, in terms of Section 75(13) of CGST/TNGST Act, 2017, read with Section 20 of IGST Act, 2017 as I confirmed penalty under Section 122(2)(b) of CGST/TNGST Act, 2017 read with Section 20 of IGST Act, 2017.” 5.The learned counsel for the petitioner submits that the petitioner will deposit the balance of the disputed tax due and, insofar as the penalty is concerned, the petitioner may be given liberty to challenge the impugned order before the Appellate Authority. 4/8
The learned Senior Standing Counsel for the respondents submits that the petitioner has lost the right by not filing an appeal and, therefore, the leave sought by the petitioner has to be rejected. 7.Having considered the submissions made by the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondents and perusing the impugned Order-in-Original / GST FORM DRC-07
No.
02/2025-GST
dated
2025
DIN 20250959X00000000FB7, I am inclined to dispose of this writ petition by directing the petitioner to deposit the balance of the tax liability and interest, which remains unpaid as on date, within a period of 30 days from today. 8.Within such time, petitioner shall also deposit 10% of the penalty imposed on him under the impugned order and file an appeal before the Appellate Authority. In case, the petitioner complies with the above stipulations, the Appellate Authority shall dispose of the appeal on merits and in accordance with law as expeditiously as possible, preferably, within a period of three months of such appeal/pre-deposit 5/8 without further reference to limitation under Section 107 of the respective GST enactments, 2017. 9.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 had been dismissed in limine today. 10.Needless to state, before passing any such order, the third respondent shall give due notice to the petitioner. 11.This Writ Petition stands disposed of, with the above observations. No costs. Consequently, connected Writ Miscellaneous Petitions are closed.
2026 sji NCC : Yes/No 6/8 TO 1. The Principal Chief Commissioner of CGST and Central Excise, Chennai Zone, 26/1, Mahatma Gandhi Road, Nungambakkam, Chennai - 600034. 2. The Commissioner of CGST and Central Excise, Madurai Commissionerate, Central Revenue Building, No. 4, Lal Bahadur Shastri Road, Bibikulam, Madurai - 625002. 3. The Assistant Commissioner of CGST and Central Excise, Madurai-I Division, No. 5, V.P. Rathinasamy Nadar Road, Bibikulam, Madurai – 625002. 7/8 C.SARAVANAN, J. sji ORDER IN WP(MD) No.23456 of 2026 Date : 14/08/2026 8/8
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.