Geea Traders vs. The Deputy State Tax Officer -1
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The petitioner, Geea Traders, filed a writ petition challenging an order dated 24.12.2025 passed by the Deputy State Tax Officer-1, Srivilliputhur Assessment Circle. This order was preceded by a show cause notice dated 27.09.2025 and several reminders. The petitioner failed to file a reply or appear for personal hearings, leading to the impugned order. The petitioner sought to quash the order and direct the release of their bank accounts held with the Indian Overseas Bank. During the hearing, the petitioner expressed willingness to pre-deposit 25% of the disputed tax amount.
Held
The Court quashed the impugned order dated 24.12.2025 passed by the first respondent. The case was remitted back to the first respondent for passing a fresh order. This decision was made conditional upon the petitioner depositing 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 27.09.2025, along with supporting documents, within the same period, treating the impugned order as an addendum to the show cause notice. If these conditions are met, the first respondent is to pass a final order on merits expeditiously, preferably within three months of the reply and pre-deposit. The attachment of the petitioner's bank accounts will be automatically vacated upon compliance. The Court clarified that if the petitioner fails to comply, the first respondent can proceed to recover the tax as if the writ petition was dismissed. The bank attachment is contingent on the 25% deposit and the absence of other tax arrears.
Key Issues
1. Whether the impugned order dated 24.12.2025, passed by the Deputy State Tax Officer-1, is liable to be quashed on the grounds of procedural irregularity or lack of opportunity to the petitioner? The petitioner argued that they are willing to pre-deposit 25% of the disputed tax amount as a condition for de novo adjudication, implying a desire for a fresh opportunity to present their case. The petitioner's counsel made an endorsement to this effect. The revenue, represented by the State counsel, did not explicitly argue against the petitioner's request but was present and took notice. The judgment does not record any specific arguments from the revenue regarding the validity of the impugned order itself, beyond the fact that the petitioner did not respond to the show cause notice and personal hearing.
Sections Cited
GST DRC-01
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Before: and
Ms.Sudarkodi Natchiyar, learned counsel for the State of Tamil Nadu, takes notice for the first respondent and Mr.Y.Jagadeesh, learned counsel, takes notice for the second 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 respective respondents. 3.This writ petition has been filed challenging the impugned order passed
by the first
respondent
bearing Ref.No.GSTIN-33EBUPA4921F1ZS/2021-2022 dated 24.12.2025, which was preceded by a show cause notice in GST DRC-01 dated 27.09.2025. 2/6 https://www.mhc.tn.gov.in/judis
The petitioner was also issued with reminders on 30.10.2025, 18.11.2025 and 18.12.2025, which called upon the petitioner to file a reply and to appear for a personal hearing. The Petitioner however neither filed any reply nor appeared for personal hearings. Thus, the impugned order has been passed. 5.When the matter is taken up for hearing today, 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 and has also made an endorsement to that effect in the Court Bundle, which reads as under:- “The petitioner ready to deposit 25% of disputed tax amount.” 6.Recording the same, the impugned order passed by the first respondent bearing Reference No.GSTIN-33EBUPA4921F1ZS/2021-2022 dated 24.12.2025 is hereby quashed and the case is remitted back to the first 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 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 GST DRC-01 dated 27.09.2025 together with requisite documents to substantiate the case by treating the impugned order dated 24.12.2025 as an addendum to the show cause notice dated 27.09.2025. 8.In case, the petitioner complies with the above stipulations, the first 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 shall also stand automatically vacated. 9.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. 10.In case, the petitioner fails to comply with any of the stipulations, the first 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. 4/6 https://www.mhc.tn.gov.in/judis
Needless to state, before passing any such order, the first respondent shall issue due notice on the petitioner. 12.This Writ Petition stands disposed of with the above observations. No costs. Consequently, connected Miscellaneous Petitions are closed. Index : Yes / No 20.07.2026 Internet : Yes / No mm To The Deputy State Tax Officer -1 Srivilliputhur Assessment Circle Integrated Commercial Taxes Building Tenkasi Main Road Pudhupalayam Virudhunagar District - 625 117. 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.