Tvl.M.M. Scrap vs. The Deputy State Tax Officer-2
Original PDF →Facts
The petitioner, Tvl.M.M. Scrap, represented by its Proprietor M. Murugan, filed a writ petition challenging an order passed by the respondent, The Deputy State Tax Officer-2 Cum Deputy Commercial Tax Officer, Dindigul Town Assessment Circle. The impugned order, dated 29.12.2025, and Form GST DRC-07, confirmed a proposal in a show cause notice dated 14.08.2025, in the absence of a reply from the petitioner. The petitioner stated that Rs. 21,768/- had been recovered from its electronic cash register, a fact the respondent's counsel could not confirm. The petitioner sought to quash the impugned order and requested an opportunity to file objections with supporting documents.
Held
The Court quashed the impugned order dated 29.12.2025 and Form GST DRC-07, remitting the case back to the respondent for a fresh order on merits. This decision was based on the consistent view taken in similar circumstances where principles of natural justice were not followed. The Court directed the petitioner to deposit 25% of the disputed tax in cash from their Electronic Cash Register within thirty days of receiving the order. Additionally, the petitioner must file a reply to the show cause notice dated 14.08.2025, along with requisite documents, treating the impugned order as an addendum to the show cause notice. Any amount already recovered or paid by the petitioner will be adjusted towards this 25% pre-deposit, subject to verification. The respondent is to pass a final order within three months of the petitioner's compliance. The attachment of the petitioner's bank account, if any, will be automatically vacated upon compliance. Failure to comply will allow the respondent to proceed with recovery as if the writ petition was dismissed.
Key Issues
1. Whether the impugned order dated 29.12.2025, confirming the proposal in the show cause notice dated 14.08.2025, is liable to be quashed for non-compliance with principles of natural justice, specifically the lack of opportunity for the petitioner to file objections? Petitioner's Contention: The petitioner argued that the impugned order was passed without affording them an opportunity to file their objections and supporting documents, violating principles of natural justice. They sought to quash the order and be allowed to present their case afresh. Respondent's Contention: The respondent's counsel was unable to confirm the recovery of Rs. 21,768/- from the petitioner's electronic cash register. The judgment does not record any other specific arguments from the respondent regarding the merits of the case or the validity of the impugned order.
Sections Cited
GST DRC-07, GST DRC-01
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Before: and
Ms.Sudarkodi Natchiyar, learned counsel for the State of Tamil Nadu, takes notice for the respondent. 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 State of Tamil Nadu appearing for the respondent. 3.The petitioner is before this Court against the impugned order passed by the respondent bearing Ref.No.GSTIN 33AVFPM3053R1Z8/2021-2022 dated
2025
and Form
GST
DRC-07
issued
in Ref.No.ZD331225423360Y, dated 29.12.2025, whereby the proposal in the show cause notice in DRC 01 dated 14.08.2025 has been confirmed in the absence of a reply to the show cause notice. 4.The learned counsel for the petitioner would submit that as on date, a sum of Rs.21,768/- has been recovered from the petitioner's electronic cash register. 2/6 https://www.mhc.tn.gov.in/judis
The learned counsel for the respondent is however unable to confirm the same. 6.Following the consistent view taken under similar circumstances, I am inclined to quash the impugned order and to remit the case back to the respondent to pass a fresh order on merit and in accordance with law, subject to petitioner depositing 25% 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. 7.Within such time, the petitioner shall also file a reply to the show cause notice dated 14.08.2025 together with requisite documents to substantiate the case by treating the impugned order dated 29.12.2025 as an addendum to the show cause notice dated 14.08.2025. 8.Needless to state, any amount recovered from the petitioner/paid by the petitioner shall be adjusted towards the aforesaid pre-deposit of 25% as ordered above. This will be however subject to verification by the respondent. 3/6 https://www.mhc.tn.gov.in/judis
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 months of such reply/pre-deposit. Subject to the petitioner complying with the above stipulations, the attachment of the bank account of the petitioner, if any, shall also stand automatically vacated. 10.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 not being in arrears of any other amount for any other tax period barring the amount demanded under the impugned order. 11.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. 12.Needless to state, before passing any such order, the respondent shall issue due notice on 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 Miscellaneous Petition is closed. Index : Yes / No 28.07.2026 Internet : Yes / No mm To The Deputy State Tax Officer-2 Cum Deputy Commercial Tax Officer Dindigul Town Assessment Circle Dindigul 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.