S Ramaiah vs. The Deputy State Tax Officer-1/Deputy Commercial Tax Officer
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The petitioner, S Ramaiah, filed a writ petition before the Madurai Bench of the Madras High Court challenging an order dated 05.02.2026, bearing Temporary ID. 332500004268TMP/2020-21 and GST DRC-07 Reference No. ZD330226035034Y, passed by the respondent, The Deputy State Tax Officer-1. This order was preceded by a Show Cause Notice dated 10.10.2025. The petitioner had not availed the opportunity for a personal hearing offered in the show cause notice, leading to the impugned order. The writ petition was filed on 24.07.2026, after the limitation period for filing an appeal under Section 107 of the respective GST enactments had expired.
Held
The Court quashed the impugned order dated 05.02.2026 and remitted the case back to the respondent for de novo 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 10.10.2025, 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. Failure to comply with the stipulations would allow the respondent to proceed with recovery as if the writ petition was dismissed. The Court noted that the limitation for filing an appeal under Section 107 had expired.
Key Issues
1. Whether the impugned order dated 05.02.2026, passed by the respondent, should be quashed as illegal, considering the petitioner's failure to appear for a personal hearing and the expiry of the appeal period under Section 107 of the respective GST enactments. Petitioner's contention: The petitioner, while acknowledging the expiry of the appeal period, expressed willingness to pre-deposit 10% of the disputed tax demand as a condition for de novo adjudication. The petitioner made an endorsement in the court bundle undertaking to pay 10% of the amount demanded. Revenue's contention: The judgment records no specific argument from the respondent revenue.
Sections Cited
Section 107
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Before: and
M/s.P.Sudarkodi Natchiyar, learned Counsel for State of TN, takes notice for the 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 Counsel for State of TN for the respondent.
In this Writ Petition, the petitioner has challenged the impugned Assessment Order in GST ASMT 15 dated 05.02.2026 bearing reference in Temporary ID. 332500004268TMP/2020-21 along with Form GST DRC-07 in Reference No. ZD330226035034Y dated 05.02.2026 passed by the respondent, which was preceded by a Show Cause Notice in ASMT 14 dated 10.10.2025, wherein the petitioner was also called upon to appear for personal hearing. However, the petitioner had not taken advantage of the same and thus, suffered the Impugned Order dated 05.02.2026. 2/6 https://www.mhc.tn.gov.in/judis
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 24.07.2026. 5. At this stage, 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.
The learned counsel for the petitioner has also made an endorsement to that effect in the Court Bundle, which is extracted hereunder:-
“Petitioner undertakes to pay 10% of the amount demanded as per the direction of this Hon’ble Court.”
In view of the above, the impugned order is 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 (30) 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 ASMT 14 dated 10.10.2025 together with requisite documents to substantiate the case by treating the Impugned Order dated 05.02.2026 as an addendum to the Show Cause Notice dated 10.10.2025. 9. 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 (3) months of such reply / pre-deposit.
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.
Needless to state, before passing any such order, the respondent shall give due notice to 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 Writ Miscellaneous Petition is closed. Index : Yes / No 29.07.2026 Internet : Yes / No (1/3) apd To The Deputy State Tax Officer -1/ Deputy Commercial Tax Officer, Pudukkottai -2 Assessment Circle, Commercial Taxes Department, Pudukkottai District. 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.
apd
2026 (1/3) 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.