Tvl. Gayathiri Jewellers vs. The State Tax Officer / Commercial Tax Officer
Original PDF →Facts
The petitioner, Tvl. Gayathiri Jewellers, represented by its Proprietor Murugiah Balasubramanian, filed a writ petition before the Madurai Bench of the Madras High Court challenging an assessment order dated 27.04.2026, passed by the respondent, the State Tax Officer/Commercial Tax Officer, Tirunelveli Town Assessment Circle. The assessment order pertained to the tax period 2022-23 and was preceded by a show cause notice dated 20.01.2025 and subsequent reminders. The petitioner had failed to file a reply or appear for personal hearings. The petitioner, however, agreed to pre-deposit 10% of the disputed tax as a condition for fresh adjudication.
Held
The Court quashed the impugned assessment order dated 27.04.2026 and remitted the case back to the respondent for fresh adjudication. This decision was made conditional upon the petitioner depositing 10% 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 20.01.2025, along with supporting documents, within the same period, treating the impugned order as an addendum to the show cause notice. If these conditions were met, the respondent was to pass a fresh order on merits within three months of the petitioner's compliance. The attachment of the petitioner's bank account, if any, would stand vacated upon compliance. The Court clarified that if the petitioner failed to comply with any stipulation, the respondent could proceed to recover the tax as if the writ petition was dismissed. The respondent was also directed to issue due notice before passing any further order.
Key Issues
1. Whether the impugned assessment order dated 27.04.2026, passed by the respondent for the year 2022-23, is liable to be quashed? Petitioner's contention: The petitioner argued that the impugned order should be quashed and the assessment proceedings redone. They expressed willingness to pre-deposit 10% of the disputed tax as a condition for de novo adjudication, as evidenced by an endorsement made in the court bundle. Respondent's contention: The respondent, represented by the Government Advocate (Tax), took notice of the petition. The judgment does not record any specific argument from the respondent against the petitioner's prayer for a fresh adjudication, other than their presence and notice of the proceedings.
Sections Cited
GST DRC-01
AI-generated summary — verify with the full judgment below
Before: and
Ms.Sudarkodi Natchiyar, learned Government Advocate (Tax), takes notice for the respondent. 2.By consent, this writ petition is disposed of at the time of admission after hearing the learned counsel for the petitioner and the learned Government Advocate (Tax) for the respondent. 3.This writ petition has been filed challenging the impugned order passed by the respondent bearing Ref.No.GSTIN 33AHZPB8464H2ZV/2022-23 and in summary order Reference No. ZD3304262177487 dated 27.04.2026, for the assessment year 2022-23, which was preceded by a show cause notice in Form GST DRC-01 dated 20.01.2025. 4.The petitioner was also issued with reminders on 01.08.2025, 12.08.2025 and 20.08.2025, which called upon the petitioner to file a reply and to appear for a personal hearing. The Petitioner however neither filed any reply nor appeared for personal hearings. Thus, the impugned order has been passed. 2/6 https://www.mhc.tn.gov.in/judis
When the matter is taken up for hearing today, the learned counsel for the petitioner submits that the petitioner is willing to pre-deposit 10% of the disputed tax as a condition for de novo adjudication and has also made an endorsement to that effect in the Court Bundle, which reads as under:- “I giving consent to pay 10% of the disputed tax.” 6.Recording the same, the impugned order passed by the respondent bearing Ref.No.GSTIN:33AHZPB8464H2ZV/2022-23 and in summary order Reference No. ZD3304262177487 dated 27.04.2026 is hereby quashed and the case is remitted back to the respondent to pass a fresh order subject to the petitioner depositing 10% of the disputed tax in cash from the petitioner's electronic cash register within a period of thirty days from the date of receipt of a copy of this order. 7.Within such time, the petitioner shall also file a reply to the show cause notice in GST DRC-01 dated 20.01.2025 together with requisite documents to substantiate the case by treating the impugned order dated 27.04.2026 as an addendum to the show cause notice dated 20.01.2025. 3/6 https://www.mhc.tn.gov.in/judis
In case, the petitioner complies with the above stipulations, the 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 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. 9.It is made clear that the bank attachment shall be lifted subject to the deposit of 10% 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. 10.In case, the petitioner fails to comply with any of the stipulations, the respondent is 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. 11.Needless to state, before passing any such order, the respondent shall issue due notice on the petitioner. 4/6 https://www.mhc.tn.gov.in/judis
This Writ Petition stands disposed of with the above observations. No costs. Consequently, connected Miscellaneous Petition is closed. Index : Yes / No 07.08.2026 Internet : Yes / No mm To The State Tax Officer / Commercial Tax Officer Tirunelveli Town Assessment Circle Tirunelveli. 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.
mm
2026 6/6 https://www.mhc.tn.gov.in/judis
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.