Tvl.Loordhusamy vs. The Deputy State Tax Officer-1
Facts
The petitioner, Tvl.Loordhusamy, filed a writ petition challenging an assessment order dated 03.02.2026, issued by the Deputy State Tax Officer-1, Pudukkottai, for the period 2021-22. The dispute concerns the levy of GST on seigniorage fees. The petitioner contended that this issue is pending before the Supreme Court of India and that the High Court had previously directed authorities to await the Supreme Court's decision. The respondent argued that proceedings were directed to be completed but appellate orders were to be kept in abeyance. The Court noted that the petitioner had not availed the opportunity to respond to the show cause notice and submit supporting documents.
Held
The Court held that the assessment order dated 03.02.2026 should be set aside and the matter remanded back to the respondent for fresh consideration. The reasoning was that the very incidence of tax was at large, pending the Supreme Court's decision. The Court granted the petitioner an opportunity to file a reply with supporting documents within two weeks. Crucially, the Court directed that final orders should be kept in abeyance until the Supreme Court pronounces its judgment. If the final order results in a tax or penalty assessment, its enforcement and demand will also be stayed until the Supreme Court's decision. The petitioner can take further steps based on the Supreme Court's outcome. No costs were imposed. The issue of whether GST is leviable on seigniorage fees was expressly left undecided, pending the Supreme Court's ruling.
Key Issues
1. Whether the assessment order passed by the respondent is illegal and arbitrary, violating principles of natural justice, particularly in light of the pending Supreme Court decision on the levy of GST on seigniorage fees? (Question of law and fact, concerning Section 74 of the Tamil Nadu Goods and Services Act, 2017). Petitioner's contention: The levy of GST on seigniorage fees is sub-judice before the Supreme Court of India, and the High Court had previously directed authorities to await the Supreme Court's verdict. Therefore, the assessment order should be quashed. Respondent's contention: The High Court had directed the completion of proceedings, although final orders were to be kept in abeyance pending the Supreme Court's decision. The petitioner failed to participate in the proceedings and submit necessary documents.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED :23.06.2026 CORAM: THE HON'BLE MR JUSTICE D.BHARATHA CHAKRAVARTHY and W.M.P(MD)No.12800 of 2026 Tvl.Loordhusamy, Temp Id 332500004206tmp, No. 6, Sivaram Complex, Sivananthapuram 1st Street, Machuvadi, Pudukkoitai. ... Petitioner(s) – Vs. - The Deputy State Tax Officer-1, Pudukkottai - 1 Assessment Circle, Commercial Taxes Buildings, Pudukkottai ... Respondent(s)
Prayer : Writ Petition is filed under Article 226 of the Constitution of India, praying this Court Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari calling for the records in TEMP ID 332500004206TMP /2021-22 dated 03.02.2026 bearing Reference 1/6 https://www.mhc.tn.gov.in/judis No. ZD330226016629G dated 03/02/2026 for the assessment year 2021-22 on the file of the respondent and quash the same as illegal , arbitrary, against the principles of natural justice and pass such further or other orders as this Honble Court may deem fit and necessary in the facts and circumstances of the case and thus render justice.
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