Tvl.Dna Fashion Arts vs. Deputy State Tax Officer (St)
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The petitioner, Tvl.Dna Fashion Arts, represented by its Proprietor A.Priscilal Jeyamani, filed a writ petition challenging an Assessment Order dated 28.11.2024, passed by the Deputy State Tax Officer (ST), Srirangam Assessment Circle. This order was preceded by a Show Cause Notice dated 05.07.2024. The petitioner had not availed the opportunity for a personal hearing and consequently suffered the impugned order. The writ petition was filed on 29.07.2026, after the limitation period for filing an appeal under Section 107 of the GST enactments had expired. The petitioner also sought a direction to the Axis Bank to defreeze its bank account.
Held
The Court quashed the impugned order dated 28.11.2024 and remitted the case back to the first respondent for fresh adjudication. This decision was made conditional upon the petitioner depositing 50% of the disputed tax in cash from their Electronic Cash Register within thirty days of receiving the order. The petitioner was also directed to file a reply to the Show Cause Notice dated 05.07.2024, along with supporting documents, treating the impugned order as an addendum. If these conditions were met, the first respondent was to pass a final order on merits within three months of receiving the reply and pre-deposit. The attachment of the petitioner's bank account would automatically stand vacated upon compliance. The Court clarified that the bank attachment would be lifted only if the 50% deposit was made and the petitioner had no other arrears for different tax periods. If the petitioner failed to comply, the respondents were at liberty to proceed with recovery as if the writ petition was dismissed. The Court also stated that due notice would be given to the petitioner before passing any order.
Key Issues
1. Whether the High Court, in its writ jurisdiction, should entertain a petition challenging an assessment order when the statutory remedy of appeal under Section 107 of the GST enactments is time-barred? Petitioner's contention: The petitioner argued that they were willing to pre-deposit 50% of the disputed tax as a condition for de novo adjudication, indicating a willingness to comply with the tax demands. They made an endorsement in the court bundle undertaking to deposit 50% of the demand amount. Revenue's contention: The judgment does not record any specific arguments from the revenue or state regarding the maintainability of the writ petition after the expiry of the appeal period. However, the revenue's representative, the learned Government Advocate (Tax), took notice for the first respondent.
Sections Cited
Section 107
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Before: and
M/s.P.Sudarkodi Natchiyar, learned Government Advocate (Tax), takes notice for the first respondent.
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 learned Government Advocate (Tax) for the first respondent.
In this Writ Petition, the petitioner has challenged the impugned Assessment Order dated 28.11.2024 bearing reference in Ref.No. ZD331124286345H in GSTIN 33CYCPP8757M1ZP/2020-2021 passed by the first respondent, which was preceded by a Show Cause Notice in DRC 01 dated 05.07.2024, wherein the petitioner was also called upon to appear for personal hearing. However, the petitioner had not taken advantage of the same and thus, 2/6 https://www.mhc.tn.gov.in/judis suffered the Impugned Order dated 28.11.2024. 4. It is noticed that the limitation 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. 5. At this stage, the learned counsel for the petitioner submits that the petitioner is willing to pre-deposit 50% of the disputed tax as a condition for de novo adjudication.
The learned counsel for the petitioner has also made an endorsement to that effect in the Court Bundle, which is extracted hereunder:-
“On behalf of my client, I undertake to deposit 50% of the demand amount. To that effect this endorsement is made.”
In view of the above, the impugned order is quashed and the case is remitted back to the first respondent to pass a fresh order subject to the petitioner depositing 50% of the disputed tax in cash from the petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of 3/6 https://www.mhc.tn.gov.in/judis this order.
Within such time, the petitioner shall also file a reply to the Show Cause Notice in DRC 01 dated 05.07.2024 together with requisite documents to substantiate the case by treating the Impugned Order dated 28.11.2024 as an addendum to the Show Cause Notice dated 05.07.2024. 9. In case the petitioner complies with the above stipulations, the first 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 (3) 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.
It is made clear that bank attachment shall be lifted subject to the deposit of 50% 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. 4/6 https://www.mhc.tn.gov.in/judis
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 was dismissed in limine today.
Needless to state, before passing any such order, the first respondent shall give due notice to the petitioner.
This Writ Petition stands disposed of, with the above observations. No costs. Consequently, connected Writ Miscellaneous Petitions are closed. Index : Yes / No 03.08.2026 Internet : Yes / No (1/2) apd To 1. Deputy State Tax Officer (ST), O/o the State Tax Officer Srirangam Assessment Circle, Tiruchirappalli District.
The Branch Manager, Axis Bank, Srirangam Branch, Tiruchirappalli District. 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.
apd
2026 (1/2) 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.