Sri Valli Jewellery vs. The Appellate Deputy Commissioner (State Tax)
Original PDF →Facts
The petitioner, Sri Valli Jewellery, filed a writ petition challenging an order dated 22.09.2025 passed by the Deputy Commercial Tax Officer/Deputy State Tax Officer-2, Rajapalayam-I, for the period April 2021-March 2022. This order was preceded by a show cause notice dated 23.05.2025 and subsequent reminders. The petitioner failed to file a reply or appear for personal hearings, leading to the impugned order. The petitioner, represented by its partner Kumar, undertook to deposit 25% of the disputed tax amount as a condition for de novo adjudication.
Held
The Court quashed the impugned order dated 22.09.2025 passed by the second respondent. The case was remitted back to the second respondent for fresh adjudication, subject to the petitioner depositing 25% 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 23.05.2025, along with supporting documents, treating the impugned order as an addendum. If these conditions were met, the second respondent was to pass a final order on merits expeditiously, preferably within three months. The attachment of the petitioner's bank account was to be automatically vacated upon compliance. The Court clarified that the bank attachment would be lifted only if the 25% deposit was made and the petitioner had no other arrears for different tax periods. If the petitioner failed to comply, the second respondent was at liberty to proceed with recovery as if the writ petition was dismissed. The Court also noted that due notice would be issued before any further order.
Key Issues
1. Whether the impugned order passed by the second respondent is liable to be quashed as illegal, arbitrary, and contrary to law, considering the petitioner's failure to respond to the show cause notice and attend personal hearings? Petitioner's Contention: The petitioner argued that they are willing to pre-deposit 25% of the disputed tax as a condition for fresh adjudication and have made an endorsement to this effect. They sought to have the impugned order quashed and the matter remitted back for reconsideration. Revenue's Contention: The judgment records no specific argument from the revenue's side other than their counsel taking notice and appearing for the respondents. The court's decision was based on the petitioner's undertaking and consent.
Sections Cited
GST DRC-01
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Before: and
Ms.P.Sudarkodi Natchiyar, learned counsel for the State of Tamil Nadu, takes notice for the respondents. 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 counsel for the respondents. 3.This writ petition has been filed challenging the impugned order passed
by the second
respondent
bearing
Ref. No.ZP330925277356Y/2021-2022
dated
2025
GSTIN
No. 33ADLFS1929E1Z4, for the assessment year 2021-22, which was preceded by a show cause notice in Form GST DRC-01 dated 23.05.2025. 2/6 https://www.mhc.tn.gov.in/judis
The petitioner was also issued with reminders on 25.06.2025, 10.07.2025 and 23.07.2025, 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. 5.When the matter is taken up for hearing today, the learned counsel for the petitioner submits that the petitioner is willing to pre-deposit 25% 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:- “It is respectfully submit that the petitioner undertakes to deposit 25% of the disputed tax amount.” 6.Recording the same, the impugned order passed by the second respondent bearing Order No.ZP330925277356Y/2021-2022/ dated 22.09.2025/GSTIN 33ADLFS1929E1Z4 is hereby quashed and the case is remitted back to the second respondent to pass a fresh 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 days from the date of receipt of a copy of this order. 3/6 https://www.mhc.tn.gov.in/judis
Within such time, the petitioner shall also file a reply to the show cause notice in GST DRC-01 dated 23.05.2025 together with requisite documents to substantiate the case by treating the impugned order dated 22.09.2025 as an addendum to the show cause notice dated 23.05.2025. 8.In case, the petitioner complies with the above stipulations, the second 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 shall also stand automatically vacated. 9.It is made clear that the bank attachment shall be lifted subject to the deposit of 25% of the disputed tax as ordered above and the petitioner and the partners of 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 second respondent is at liberty to proceed against the petitioner to recover the 4/6 https://www.mhc.tn.gov.in/judis 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 second respondent shall issue due notice on the petitioner. 12.This Writ Petition stands disposed of with the above observations. No costs. Consequently, connected Miscellaneous Petitions are closed. Index : Yes / No 04.08.2026 Internet : Yes / No mm To 1.The Appellate Deputy Commissioner (State Tax), Commercial Taxes Building NGO Nagar Pelampatti Virudhunagar-626001. 2.The Deputy Commercial Tax Officer /The Deputy State Tax Officer -2 Office of the State Tax Officer Rajapalayam-I Assessment Circle T.P.Mills Road Rajapalayam Virudhunagar, Tamil Nadu - 626117. 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.