M/S.Vel Chickens vs. The Deputy State Tax Officer- 1
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The petitioner, M/s. Vel Chickens, filed a Writ Petition challenging an order dated 30.12.2025 and a consequential order in Form DRC-07 dated 30.12.2025, passed by the Deputy State Tax Officer-1, for the tax period 2021-22. The impugned order was passed after a Show Cause Notice dated 26.09.2025 was issued. The petitioner failed to file a reply to the Show Cause Notice or produce supporting documents. The Writ Petition was filed on 29.07.2026, after the period of limitation for filing an appeal under Section 107 of the respective GST enactments had expired. The petitioner expressed willingness to deposit 25% of the disputed tax for de novo adjudication.
Held
The Court quashed the impugned order dated 30.12.2025 and remitted the matter to the respondent for fresh adjudication. This decision was based on the petitioner's submission and willingness to deposit 25% of the disputed tax in cash through their Electronic Cash Ledger within thirty days. The Court directed the petitioner to file a comprehensive reply to the Show Cause Notice dated 26.09.2025, along with supporting documents, within the same period. The respondent was instructed to consider the petitioner's reply and pass a fresh order on merits and in accordance with law within three months of receiving the reply and pre-deposit. The Court also stipulated that if the petitioner failed to comply with these conditions, the respondent could recover the tax as if the Writ Petition had been dismissed. The respondent was also reminded to provide a reasonable opportunity of being heard before passing any adverse order. The issue of limitation for appeal under Section 107 was implicitly bypassed due to the direction for de novo adjudication.
Key Issues
1. Whether the impugned order dated 30.12.2025, passed by the Deputy State Tax Officer-1, is liable to be quashed on the grounds of procedural irregularities and lack of opportunity to the petitioner, despite the expiry of the appeal period under Section 107 of the GST enactments? The petitioner argued that while they failed to respond to the Show Cause Notice, the court should consider quashing the order and allowing for a fresh adjudication, given their willingness to deposit 25% of the disputed tax. They sought an opportunity to present their case comprehensively. The respondent, represented by the Government Advocate (Taxes), did not present any specific arguments against the petitioner's request for de novo adjudication, but rather the court noted the expiry of the appeal period and the petitioner's failure to respond to the Show Cause Notice.
Sections Cited
Section 107
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Before: and Hon’ble Court may deem fit & proper in the circumstances of the case
Ms.P.Sudarkodi Natchiyar, learned Government Advocate (Taxes), takes notice for the respondent.
This Writ Petition is taken up for final disposal at the stage of admission with the consent of the learned counsel for the petitioner and the learned Government Advocate (Taxes) for the respondent.
In this Writ Petition, the petitioner has challenged the impugned order dated 30.12.2025 bearing Reference No. GSTIN: 33BDEPG2841P1ZH/2021- 2022, passed by the respondent.
The impugned order was preceded by a Show Cause Notice in Form GST DRC-01 dated 26.09.2025 and subsequent reminders. The petitioner neither submitted a reply to the Show Cause Notice nor produced any documents in support of the petitioner's case. Consequently, the respondent passed the impugned order dated 30.12.2025. 5. It is noticed that the period of limitation prescribed for filing an appeal under Section 107 of the respective GST enactments, 2017 against the impugned order has already expired. The present Writ Petition has been filed only on 29.07.2026. https://www.mhc.tn.gov.in/judis __________ Page3 of 5
The learned counsel for the petitioner, appearing through Video Conferencing, submitted that the petitioner is willing to deposit 25% of the disputed tax as a condition for de novo adjudication. The said submission is recorded.
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 25% 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 26.09.2025, together with all supporting documents, to substantiate the petitioner's case, treating the impugned order dated 30.12.2025 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- 1 Office of the Deputy Commercial Tax Officer, Kodumudi Assessment Circle, 2nd Floor, Commercial Taxes Building, North Pradhakshanam Road, Karur, Tamilnadu 639 001 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.