Manickavel Edible Oils Private Limited vs. State Tax Officer (Review)
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Before: and
Heard together (4 matters)
Read from the judgment's own cause title. This page is filed under one of them.
In these writ petitions, the petitioner has challenged the respective show cause notices issued for the tax period from 2022-23 to 2025-26 pursuant to an inspection held under Section 67 of the respective GST enactment. 4/9 https://www.mhc.tn.gov.in/judis
The argument of the learned Senior Counsel for the petitioner is that there are no foundational facts available for issuance of notice under Section 74 and that the petitioner has cooperated with the respondents in the investigation under Section 67 of the respective GST enactment by furnishing all the documents with a detailed reply, however, ignoring the same, the impugned show cause notices have been issued. Hence, it is prayed that the impugned proceedings should be quashed. 3.The learner senior counsel also drew attention to the following decisions of the Calcutta High Court:- “i) Diamond Beverages Private Limited and another Vs. Assistant Commissioner of CGST & CX and others, (MAT No. 1948 of 2023) ii) M/S. Jyoti Tar Products Private Limited and another Vs. Deputy Commissioner, State Tax and others, M.A.T. No. 2291 of 2024.” 4.The learned counsel for the respondent, on the other hand, would submit that these writ petitions are premature and are liable to be dismissed as the petitioner has an alternate remedy by filing a reply. It is submitted that 5/9 https://www.mhc.tn.gov.in/judis
the petitioner is attempting to short-circuit the proceedings by filing the present writ petitions to quash the proceedings, which have been initiated validly under Section 74 of the respective GST enactment. 5.I have considered the arguments advanced by the learned senior counsel for the petitioner and the learned counsel for the respondent. 6.The scheme under the respective GST enactment is very detailed and at every stage, there are safeguards prescribed. After the annual returns are filed, a scrutiny can be done under Section 61 of the respective GST enactment. 7.During the scrutiny also, ancillary proceedings can commence with the audit under Section 65 of the respective GST enactment or investigation under Section 67 of the respective GST enactment or an audit under Section 65, special audit under Section 66 or inspection search of seizure under Section 76. Each of these can also lead to a proceeding under Section 73 or Section 74 or under Section 74A with effect from 01.04.2024. 6/9 https://www.mhc.tn.gov.in/judis
In case, in response to the notice in INS – 01, reply in INS -02 is not found satisfactory, the respondent is entitled to issue a notice under Section 73 or 74 depending upon the gravity of the case. 9.In case, a notice is issued under either of the provisions, the petitioner has to file a proper reply to the allegations in the show cause notice, in which case the respondent, as an adjudicating authority, is duty bound to pass an order in an unbiased and impartial manner without following the well settled principles of law. 10.It is made clear that the GST Department relies on the returns and the documents filed by the petitioner and in case, an assessee is found wanting in complying with the requirements, the proceedings under Sections 73 and 74 and now under Section 74A cannot be emasculated by filing a writ petition under Article 226 of the Constitution of India. Therefore, these Writ Petitions are liable to be dismissed and are accordingly, dismissed. 11.The petitioner is directed to file a reply to the respective show cause notices by substantiating the defense with necessary documents, within a 7/9 https://www.mhc.tn.gov.in/judis
period of 30 days from the date of receipt of a copy of this order. In case, the petitioner complies with the above stipulation, the respondent shall proceed to pass an order in an impartial manner without any revenue bias. No costs. Consequently, connected Miscellaneous Petitions are closed. Index : Yes / No 20.07.2026 Internet : Yes / No mm To State Tax Officer (Review) Office of Joint Commissioner (State Tax) (Intelligence) Commercial Taxes Building Madurai Main Road Virudhunagar - 626 001. 8/9 https://www.mhc.tn.gov.in/judis
C.SARAVANAN, J.
mm W.P.(MD) Nos.20511 to 20514 of 2026 20.07.2026 9/9 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.