M/S.Udaya Granite Point vs. The Commercial Tax Officer

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WP(MD)/20550/2026HC MadrasGSTCNR HCMD01065239202621 July 2026Bench: HONOURABLE MR JUSTICE C. SARAVANAN6 pages

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Cause title — parties, addresses and appearances
W.P.(MD) No. 20550 of 2026 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 21.07.2026 CORAM: THE HON'BLE MR.JUSTICE C.SARAVANAN W.P.(MD)No.20550 of 2026 and W.M.P.(MD)No.15228 of 2026 M/s.Udaya Granite Point, Represented by its Proprietor K.Mathivanan ... Petitioner Vs. 1.The Commercial Tax Officer, Office of the Commercial Tax Office, Thenkasi Taluk & District. 2.M/s.Teja Industries, Represented by its Authorised Person 3.M/s.Sheetal Industries, Represented by its Authorised Person ... Respondents Prayer : Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records of the Respondents, particularly the 1st Respondent’s Impugned Orders of Show Cause Notices dated 09.01.2026, issued under Section 74 of the GST Act vide Ref.No.ZD330126064577B and Ref.No.ZD330126065105T and quash the same 1/6 https://www.mhc.tn.gov.in/judis W.P.(MD) No. 20550 of 2026 and considering the Petitioner’s Representation dated 27.02.2026. For Petitioner : Mr.R.Thanjan For Respondents : For R1 : Mr.S.Venkatesh Counsel for the State of Tamil Nadu

ORDER The Petitioner is before this Court against the Impugned Order dated 09.01.2026 whereby the proposal in the Show Cause Notice in GST DRC-01 dated 07.11.2024 has been confirmed for the Tax Period 2022-2023. 2. The aforesaid proceeding was preceded with an intimation in GST DRC-01A dated 26.07.2024. In response to the said Show Cause Notice in GST DRC-01 dated 07.11.2024, the Petitioner has replied on 07.04.2025. 3. The case of the Petitioner appears to be that the Petitioner has paid tax and purchased items from M/s.Teja Industries and M/s.Sheetal Industries. The contention of the Department is that these entities are non-existing entities, and that the Petitioner had purportedly availed Input Tax Credit on the said transactions, and is therefore liable to refund the Input Tax Credit along with 2/6 https://www.mhc.tn.gov.in/judis interest and penalty.

4.

The Petitioner has filed this Writ Petition stating that the Petitioner had indeed availed the Input Tax Credit validly. The Petitioner ought to have filed an appeal under Section 107 of the respective GST Enactments against the Impugned Order dated 09.01.2026. However, the limitation has already been expired.

5.

The argument of the Petitioner touches on the merits of the case. As such, this Court does not see any procedural irregularities committed by the 1st Respondent while passing the Impugned Order.

6.

Learned counsel for the Petitioner, appearing through video conferencing, submits that the Petitioner is willing to deposit 25% of the disputed tax as confirmed in the Impugned Order.

7.

To balance the interest of the Petitioner and the Revenue and recording the consent of the Petitioner, this Court is inclined to dispose this Writ Petition by giving liberty to the Petitioner to file appeals against the respective orders before 3/6 https://www.mhc.tn.gov.in/judis the Appellate Authority within a period of thirty (30) days from today subject to the Petitioner depositing 25% of the disputed tax in cash or 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.

8.

In case the Petitioner complies with the above stipulated condition, the Appellate Authority shall entertain the appeal and dispose of the same on merits after hearing the Petitioner without reference to limitation. Subject to the Petitioner complying with the above stipulated condition, the attachment of the bank account of the Petitioner shall also stand automatically raised/vacated.

9.

In case the Petitioner fails to comply with the condition stipulated above, the Authorities under the Act are at liberty to proceed against the Petitioner in accordance with law as if this Writ Petition was dismissed in limine today.

10.

This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petition is closed. 21.07.2026 4/6 https://www.mhc.tn.gov.in/judis Neutral Citation : Yes / No arb To: The Commercial Tax Officer, Office of the Commercial Tax Office, Thenkasi Taluk & District. 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J. arb W.P.(MD)No.20550 of 2026 21.07.2026 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.