Tvl.Noor Jewellers vs. The State Tax Officer

This Writ Petition is taken up for final hearing at the time of admission with the consent of the learned counsel for the petitioner and the learned Special Government Pleader for the respondent.

The petitioner is before this Court challenging the impugned order dated 02.09.2024, whereby the proposal contained in the Show Cause Notice in Form GST DRC-01, dated 02.09.2024, for the tax period 2018-2019, has been confirmed after considering the petitioner's reply to the said Show Cause Notice. 2/8 https://www.mhc.tn.gov.in/judis

The allegation against the petitioner is that the petitioner had availed Input Tax Credit on the strength of fake invoices raised by Roys Gold, Coimbatore, whose GST registration was cancelled with effect from 01.07.2024. 5. On a specific query as to whether the documents were produced by the petitioner to substantiate the receipt of the gold items from the said supplier, the learned counsel for the petitioner submits that the petitioner is in possession of the invoices and that the transactions were routed through the petitioner's bank account, which is also reflected in the income-tax statement of the petitioner.

The learned counsel for the petitioner further submits that 52% of the disputed tax has already been recovered. He submits that the matter may be remitted back to the respondent to re-examine whether a case is made out for invocation of the extended period of limitation, in the light of the decision of this Court in R.Muruganandam (Works Contractor) Vs. The State Tax Officer (Inspection-II), Office of the Joint Commissioner (State Tax) (Intelligence), No.3/216, 3/8 https://www.mhc.tn.gov.in/judis Pavithramanikkam Main Road, Thiruvarur and another [W.P.Nos. 42667, 42671, 42682 and 42688 of 2025, dated 06.11.2025].

Per contra, the learned Special Government Pleader for the respondent has referred to the decision of this Court in M/s.Fastenex Private Limited, Represented by its Managing Director A.L.Shah Vs. State Tax Officer (Inspection-VI), Office of the Joint Commissioner (ST) (Intelligence), No.1, Vallalar Nagar, Manjakuppam, Cuddalore – 607 001 [W.P.Nos.35967 of 2024 etc. batch, dated 08.06.2026], rendered in the context of Sections 73 and 74 of the respective GST enactments, 2017. 8. Having considered the submissions made by the learned counsel on either side, I am of the view that the matter can be remitted back to the respondent for fresh consideration.

In view of the above, the impugned order is set aside and the matter is remitted back to the respondent for fresh consideration, subject to the petitioner filing a reply to the Show Cause Notice that preceded the impugned order. 4/8 https://www.mhc.tn.gov.in/judis

The petitioner shall file a reply to the said Show Cause Notice within a period of thirty (30) days from the date of receipt of a copy of this order, by treating the impugned order as an addendum to the Show Cause Notice.

The respondent shall re-examine the issue as to whether the petitioner has sufficient documents to substantiate the actual receipt of the gold items/consignment from the said supplier and, consequently, whether the Input Tax Credit availed by the petitioner is liable to be disallowed.

The respondent shall also re-examine the issue as to whether the facts and circumstances of the case warrant invocation of the extended period of limitation under the applicable provisions of the respective GST enactments, 2017. 13. In case the petitioner files the reply within the stipulated period, the respondent shall proceed to pass fresh orders on merits and in accordance with law, as expeditiously as possible, preferably within a 5/8 https://www.mhc.tn.gov.in/judis period of three (3) months thereafter, after affording an opportunity of personal hearing to the petitioner.

In case the petitioner fails to file the reply within the period stipulated above, the respondent is at liberty to proceed against the petitioner in accordance with law, as if this Writ Petition had been dismissed in limine today.

Needless to state, before passing any fresh order, the respondent shall afford due opportunity of personal hearing to the petitioner.

This Writ Petition stands disposed of with the above observations. No costs. Consequently, the connected miscellaneous petitions are closed.

2026 sji NCC : Yes/No 6/8 https://www.mhc.tn.gov.in/judis TO The State Tax Officer, Nanguneri Assessment Circle, Nanguneri. 7/8 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J. sji ORDER IN WP(MD) No.26903 of 2026 Date : 18/09/2026 8/8 https://www.mhc.tn.gov.in/judis