M/S.Dharmarathina Textile Private Limited vs. The Deputy Commissioner (St), (GST)

Facts

M/s. Dharmarathina Textile Private Limited (Petitioner) filed a writ petition seeking a Mandamus to prevent the Deputy Commissioner (ST) (1st Respondent) and the Assistant Commissioner (ST) (2nd Respondent) from taking further proceedings, including recovery and bank attachment, pursuant to an appeal order dated 22.10.2025. The Petitioner had filed a rectification petition dated 26.11.2025 before the 1st Respondent, which was pending. The Petitioner sought to stay any recovery actions until the disposal of this rectification petition. The Special Government Pleader, appearing for the respondents, submitted that the rectification petition would be disposed of within three months.

Held

The Court considered the submissions made by both parties. The petitioner sought a stay on recovery and bank attachment proceedings until their rectification petition was decided. The revenue, through the Special Government Pleader, assured that the rectification petition would be disposed of within three months. In light of this assurance, the Court directed that there should be no attachment of the petitioner's bank account until the disposal of the rectification petition. The writ petition was accordingly disposed of with this direction. The Court did not delve into the merits of the appeal order or the rectification petition itself, focusing solely on the interim relief sought by the petitioner and the assurance given by the revenue.

Key Issues

1. Whether the Court should issue a Writ of Mandamus to forbear the respondents from taking recovery proceedings, including bank attachment, consequent to the appeal order dated 22.10.2025 until the disposal of the petitioner's rectification petition dated 26.11.2025. Petitioner's Contention: The petitioner argued that further recovery proceedings should be stayed pending the decision on their rectification petition, as it could potentially alter the basis of the appeal order. They sought a direction to the respondents to refrain from coercive measures until the rectification petition was decided. Revenue's Contention: The Special Government Pleader for the respondents stated that the respondents would dispose of the petitioner's rectification petition within a period of three months from the date of the hearing.