M/S. The Madurai District Co-Operative Milk Producers Union Limited vs. The State Tax Officer 1 (Intelligence)
Facts
The petitioner, M/s. The Madurai District Co-operative Milk Producers Union Limited, filed a writ petition challenging an ex-parte assessment order dated 19.03.2025, passed by the State Tax Officer 1 (Intelligence) under Section 74 of the TNGST Act, 2017. The petitioner contended that the order was passed ex-parte because their sole accounts staff failed to notice the show cause notice. The impugned order was a Form GST DRC-07 with reference number ZD330325140785F, related to GSTIN 33AACAT3518KIZI/2021-22. The petitioner sought to quash this order.
Held
The Court allowed the writ petition on terms. It acknowledged the petitioner's explanation for not responding to the show cause notice, attributing it to a clerical oversight by their single accounts staff. While typically a 25% deposit of the disputed tax is required for an additional opportunity, the Court, considering the petitioner is a co-operative society, reduced this to 15%. The Court held that upon the petitioner depositing 15% of the disputed tax amount within four weeks, the impugned order dated 19.03.2025 would stand set aside. The matter was remitted back to the respondent for fresh consideration, with the petitioner directed to appear, file a reply, and produce documents. The respondent was instructed to consider these in accordance with law and pass fresh orders. The ratio decidendi is that procedural lapses due to administrative constraints in co-operative societies may warrant a lenient approach for providing an opportunity to be heard, provided a substantial portion of the disputed tax is secured.
Key Issues
1. Whether the ex-parte assessment order passed under Section 74 of the TNGST Act, 2017, should be set aside given the petitioner's submission of a clerical oversight by their single accounts staff? Petitioner's argument: The petitioner, a co-operative society, argued that the failure to respond to the show cause notice was due to an oversight by their sole accounts staff, and they should be granted an opportunity to present their case. Revenue's argument: The judgment does not record any specific arguments made by the respondent revenue authority.
Sections Cited
Section 74
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT Dated: 25.03.2026 CORAM THE HONOURABLE MR JUSTICE D.BHARATHA CHAKRAVARTHY W.P(MD)Nos.7982, 7983, 7984, 7985, 7986, 7987 of 2026 and W.M.P(MD)Nos.6524, 6526, 6528, 6529, 6525, 6527, 6532, 6531 and 6530 of 2026 W.P.(MD).No.7982 of 2026: M/s. The Madurai District Co-operative Milk Producers Union Limited Represented by its General Manager Dr. K. Vaneeswari Sivagangai Main Road Sathamangalam Madurai - 625 020. ... Petitioner Vs.
The State Tax Officer 1 (Intelligence), Roving Squad, Commercial Taxes Building, Dr. Thangaraj Salai, KK Nagar, Madurai - 625 020. ...Respondent Prayer: 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 the impugned orders in the Form GST DRC-07 vide Reference No. ZD330325140785F along with its detailed Order vide GSTIN - 1 https://www.mhc.tn.gov.in/judis 33AACAT3518KIZI/2021-22, dated 19.03.2025 passed by the respondent herein and quashes the same, and pass such further or other orders as this Honble Court may deem fit and proper
The judgment continues below.
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