Tvl.Siva Traders vs. The Deputy State Tax Officer - 2
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Before: and
The petitioner is before this Court challenging the impugned order dated 24.12.2025, whereby the proposal contained in the Show Cause Notice in Form GST DRC-01 dated 19.09.2025 has been confirmed after taking note of the petitioner's reply dated 01.12.2025. 2. The case of the petitioner appears to be that the petitioner is engaged in the supply of exempted goods. However, no supporting documents were furnished by the petitioner to substantiate the said defence. Thereafter, the petitioner filed an application under Section 161 of the CGST/TNGST Act, 2017 seeking rectification on 13.03.2026, which also came to be rejected by an order dated 19.05.2026. 3. The petitioner ought to have submitted a proper reply together with supporting documents to establish that the petitioner was, in fact, engaged in the supply of exempted goods.
At this stage, the learned counsel for the petitioner submitted that the petitioner is willing to deposit 10% of the disputed tax as a condition for de novo adjudication. https://www.mhc.tn.gov.in/judis __________ Page3 of 5
The learned counsel for the petitioner has also made an endorsement to that effect in the Court bundle, which is extracted below: "The writ petitioner undertakes to pay 10% of the disputed tax."
In view of the above, the impugned order is quashed and the matter is remitted to the respondent for fresh adjudication, subject to the petitioner depositing 10% of the disputed tax in cash through the petitioner's Electronic Cash Ledger within a period of thirty (30) days from the date of receipt of a copy of this order.
Within the said period, the petitioner shall also file a comprehensive reply to the Show Cause Notice in Form GST DRC-01 dated 19.09.2025, together with all supporting documents to substantiate the petitioner's case, treating the impugned order dated 24.12.2025 as an addendum to the said Show Cause Notice.
Upon compliance with the above conditions, the respondent shall consider the petitioner's reply and pass a fresh order on merits and in accordance with law as expeditiously as possible, preferably within a period of three (3) months from the date of receipt of the reply and completion of the pre- deposit. https://www.mhc.tn.gov.in/judis __________ Page4 of 5
If the petitioner fails to comply with any of the above stipulations, the respondent shall be at liberty to proceed to recover the tax in accordance with law, as if this Writ Petition had been dismissed in limine.
Needless to state, before passing any adverse order, the respondent shall afford the petitioner a reasonable opportunity of being heard.
This Writ Petition stands disposed of on the above terms. There shall be no order as to costs. Consequently, the connected Writ Miscellaneous Petition is closed. 06-08-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No smn2 To The Deputy State Tax Officer - 2 Tenkasi Assessment Circle, Commercial Taxes Buildings, Tenkasi https://www.mhc.tn.gov.in/judis __________ Page5 of 5 C.SARAVANAN, J. smn2 06-08-2026 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.