Tvl Punithan Stores vs. The Assistant Commissioner (St)
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Before: and
The petitioner is aggrieved by the impugned order dated 28.06.2025. The said order was preceded by a notice in DRC-01 dated 18.04.2025 for the tax period 2021–2022. The impugned order itself records that the petitioner had inward supply to the value of Rs. 7,92,795/-, and outward supply to the value of Rs.10,45,600/-. The output tax payable by the petitioner was determined at Rs.1,85,301/-, 2/7 https://www.mhc.tn.gov.in/judis which was adjusted partly against the petitioner’s Input Tax Credit (ITC) of Rs.1,74,219/- and the balance of Rs.12,888/- was directed to be paid in cash. The relevant portion of the impugned order reads as follows:- “Tvl.Punithan Stores, Madurai bearing GSTIN: 33AABFP0190P1Z5 functioned at 106, Nethajj Road, Madurai – 625 001 hereafter referred as taxperson who is a regular taxperson, retailer in sewing needles, Knitting needles, Bodkins, Embroidery Stilettos and similar articles, Safety pins bearing HSN Code 84529099, 73199000 as per profile, comes within the State Juri iction. Taxperson reported a total turnover of Rs.10,45,600/- and taxable turnover Rs.10,45,600/- during the tax period 2021-2022. For the tax period, taxperson filed GSTR1, GSTR3B and GSTR2A were scrutinized. It reveals inward supply to a value of Rs. 7,92,795- and outward supply to a value of Rs. 10,45,600-, output tax effect of Rs.1,85,301/- is adjusted through ITC of Rs.1,74,219- and remaining through cash payment of Rs.12,888-respectively.”
However, the impugned order has failed to properly appropriate the amounts already adjusted, and instead has raised a demand for the following sums: 3/7 https://www.mhc.tn.gov.in/judis Details IGST Rs. CGST Rs. SGST Rs. Tax due 3195 538140 538140 Paid 0 0 0 Balance 3195 538140 538140 Interest Due As on 24.03.2025 1776 299088 299088 Interest Paid 0 0 0 Balance 1776 299088 299088
Apart from the amount, the following penalty has been imposed on the petitioner:- Details IGST Rs. CGST Rs. SGST Rs. Penalty U/s 73(9) 20000 53814 53814 Paid 0 0 0 Balance 20000 53814 53814
It is noticed that the petitioner did not participate in the show cause proceedings which preceded the impugned order. The explanation put forth during the course of hearing today is that the petitioner had entrusted the matter to his Accountant, who failed to inform him, and consequently the petitioner suffered the impugned order. 4/7 https://www.mhc.tn.gov.in/judis
Under normal circumstances, this Court would have quashed the impugned order, following the consistent view taken in similar cases, by directing the petitioner to deposit 25% of the disputed tax. In the present case, however, it is seen that a sum of Rs.1,85,301/- has already been recovered but has not been duly adjusted. Therefore, in order to balance the interests of both sides, this Court is inclined to quash the impugned order and remit the matter back to the respondent for fresh consideration.
Accordingly, the impugned order dated 28.06.2025 is quashed and shall be treated as an addendum to the show cause notice in DRC-01 dated 18.04.2025. The petitioner shall file a reply within a period of 30 days from the date of receipt of a copy of this order. On receipt of the same, the first respondent shall pass a fresh order on merits, after affording due opportunity to the petitioner, within a period of two months thereafter.
This writ petition is disposed of accordingly. No costs. Consequently, connected miscellaneous petitions are closed 28.08.2025 NCC : Yes/No Index : Yes/No Internet:Yes skn 5/7 https://www.mhc.tn.gov.in/judis To 1.The Assistant Commissioner (ST), Tamil Nadu Commercial Tax Department, Nethaji Road Assessment Circle, Dr.Thangaraj Salai, Madurai – 625 020. 2.The Deputy Commissioner (ST), GST Appeal, Commercial Taxes Building, Dr.Thangaraj Salai, Madurai – 625 020. 6/7 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.
skn
Writ Petition(MD)No.23286 of 2025 and W.M.P(MD)Nos.18297 and 18299 of 2025
2025 7/7 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.