Pandian vs. The State Tax Officer St / Commercial Tax Officer
Held
The Court held that Notification Nos. 09/2023-Central Tax and 56/2023-Central Tax are vitiated and illegal. The reasoning was that these notifications diminished the limitation period available to the authorities, contrary to the object of Section 168A of the CGST Act and the Supreme Court's order under Article 142. They were based on an erroneous assumption of law and curtailed vested rights, thus suffering from arbitrariness. Notification No. 56/2023 was also found to be illegal for being issued prior to GST Council recommendations and based on GIC recommendations, which are not a substitute for the GST Council. Consequently, the impugned assessment order was quashed, and the case was remitted back to the respondents for a fresh order on merits. The attachment on the petitioner's bank account and property was directed to be lifted forthwith. The final order to be passed by the respondents will abide by the outcome of a pending case before the Supreme Court.
Facts
The petitioner, Pandian, filed a writ petition challenging an assessment order dated 24.07.2024 for the assessment year 2019-2020, passed by the State Tax Officer (1st respondent). The petitioner also challenged three notifications: Notification No. 09/2023-Central Tax dated 31.03.2023 and Notification No. 56/2023-Central Tax dated 28.12.2023 issued by the Union of India (3rd respondent), and G.O.Ms.No.41 dated 05.04.2023 issued by the State Government (2nd respondent). The petitioner had not replied to the notices preceding the assessment order. The petitioner's bank account and property had been attached.
Key Issues
1. Whether Notification Nos. 09/2023-Central Tax and 56/2023-Central Tax, issued under Section 168A of the CGST Act, are vitiated and illegal? Petitioner's arguments: The petitioner relied on a recent order of the Principal Bench of the Madras High Court in M/s. Tata Play Limited vs. Union of India, which quashed similar notifications. The petitioner argued that these notifications were arbitrary and illegal, diminishing the limitation period available to authorities and curtailing vested rights. The petitioner also highlighted that Notification No. 56/2023 was issued prior to the GST Council's recommendations and on the basis of recommendations from the GIC, which cannot substitute the GST Council. Revenue/State's arguments: The judgment does not record specific arguments from the respondents regarding the validity of the notifications or the assessment order. However, the respondents are the authorities who issued the impugned order and notifications.
Sections Cited
Section 168A, Section 73
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 25.11.2025 CORAM THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN and W.M.P(MD)Nos.26820 & 26821 of 2025 Pandian ... Petitioner Vs. 1.The State Tax Officer (ST)/ Commercial Tax Officer, Bodinayakanur Assessment Circle, Theni. 2.The State represented by The Secretary, Commercial Taxes & Registration (B1) Department, Fort St.George, Chennai – 600 009. 3.Union of India, Secretary to the Government of India, Ministry of Finance (MOF), Raj Path Marg, 'E' Block, Central Secretariat, New Delhi – 110 011. ... Respondents 1/7 https://www.mhc.tn.gov.in/judis Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari to call for the records of the impugned proceedings of the third respondent Notification No. 09/2023-Central Tax dated 31.03.2023, and that of proceedings of the second respondent in G.O.Ms.No.41 dated 05.04.2023 and that of the proceedings of the 3rd respondent Notification No.56/2023-Central Tax dated 28.12.2023 and that of the assessment order passed
The judgment continues below.
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