M/S. Sri Velmurugan Starch Industries vs. The State Tax Officer
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The petitioner, M/s. Sri Velmurugan Starch Industries, challenged an order in Form GST DRC 07, dated 30.03.2026, issued by the respondent, the State Tax Officer, Thuraiyur Assessment Circle. This order was passed for the tax period 2024-2025 under Section 74 of the GST enactments. The impugned order followed a Show Cause Notice (SCN) in DRC 01 dated 05.08.2025, to which the petitioner was called for a personal hearing but did not attend. Consequently, the petitioner suffered the order dated 30.03.2026. The petitioner expressed willingness to pre-deposit 25% of the disputed tax amount as a condition for de novo adjudication.
Held
The Court quashed the impugned order dated 30.03.2026 and remitted the case back to the respondent for fresh adjudication. This decision was predicated on the petitioner's undertaking to deposit 25% of the disputed tax in cash from their Electronic Cash Register within thirty days of receiving a copy of the order. The Court directed the petitioner to also file a reply to the Show Cause Notice dated 05.08.2025, along with supporting documents, treating the impugned order as an addendum to the SCN. The respondent is to pass a final order on merits and in accordance with law expeditiously, preferably within three months of the petitioner's compliance. The Court stipulated that if the petitioner fails to comply with these conditions, the respondent is at liberty to proceed with recovery as if the writ petition was dismissed. The respondent must provide due notice to the petitioner before passing any further order. No costs were awarded.
Key Issues
1. Whether the impugned order dated 30.03.2026, passed under Section 74 of the GST enactments, is liable to be quashed? The petitioner argued that they are willing to pre-deposit 25% of the disputed tax as a condition for de novo adjudication, implying a procedural irregularity or a desire for a fresh opportunity to present their case. The respondent, represented by the State Tax Officer, did not present any arguments as the matter was being heard at the admission stage, and the counsel for the State took notice. The judgment does not record any specific arguments from the respondent's side regarding the validity of the impugned order itself, beyond acknowledging the petitioner's submission.
Sections Cited
Section 74
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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 Order Form GST DRC 07 vide Reference No. ZD3303262759831 along with its detailed order vide GSTIN.33AARFS9891G1ZF both dated 30.03.2026 for the tax period 2024-2025 passed by the respondent under Section 74 of the respective GST enactments, 2017, which was preceded by a Show Cause Notice in DRC 01 dated 05.08.2025, wherein the petitioner was also called upon to appear for personal hearing. However, the petitioner had not taken advantage of the same 2/6 https://www.mhc.tn.gov.in/judis and thus, suffered the Impugned Order dated 30.03.2026. 4. At this stage, 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.
The learned counsel for the petitioner has also made an endorsement to that effect in the Court Bundle, which is extracted hereunder:-
“It is submitted that the petitioner permitted to deposit 25% tax amount.”
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 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.
Within such time, the petitioner shall also file a reply to the Show Cause Notice in DRC 01 dated 05.08.2025 together with requisite documents to 3/6 https://www.mhc.tn.gov.in/judis substantiate the case by treating the Impugned Order dated 30.03.2026 as an addendum to the Show Cause Notice dated 05.08.2025. 8. 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.
This Writ Petition stands disposed of, with the above observations. No costs. Consequently, connected Writ Miscellaneous Petitions are closed. Index : Yes / No 27.07.2026 Internet : Yes / No (2/2) apd 4/6 https://www.mhc.tn.gov.in/judis To The State Tax Officer, Thuraiyur Assessment Circle, Thuraiyur. 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.
apd
2026 (2/2) 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.