M/S.Sri Vaira Balaji Fireworks vs. The Commissioner Of Commercial Tax

The petitioner is before this Court challenging the impugned order dated 22.04.2026 passed in Form GST DRC-07 for the tax period 2023-2024. 2.The impugned order has been passed under Section 74A(9) of the respective GST Enactments in the absence of a reply to the Show Cause Notice that preceded the impugned order. The case of the Department appears to be that the petitioner diverted the receipts to the personal accounts of its 2/6 https://www.mhc.tn.gov.in/judis partners, namely, Madurai Veeran Vairavan, V.Raja and V.Jotheswwaran and thereby suppressed the turnover in the monthly returns filed in Form GSTR-3B. 3.The learned counsel for the petitioner was asked to explain as to whether any GST registration stood in the names of the respective partners. However, it is noticed that only two of the partners, namely, Madurai Veeran Vairavan and V.Raja, obtained GST registrations on 29.08.2023 and 11.03.2025, respectively. Therefore, the independent GST registrations obtained by the aforesaid partners during the subsequent tax period are of no relevance to the present case. 4.The records filed by the petitioner also reveal that there were huge transactions in the business current account maintained with Axis Bank. The petitioner ought to have submitted a proper reply to the Show Cause Notice that preceded the impugned order. The petitioner also ought to have produced the relevant documents and appeared for the personal hearing. 5.Considering the above, I am inclined to remit the matter back to the third respondent to pass a fresh order, subject to the condition that the 3/6 https://www.mhc.tn.gov.in/judis petitioner deposits 10% of the disputed tax confirmed by the impugned order, which the petitioner would otherwise have been required to deposit under Section 107 of the respective GST Enactments for filing an appeal before the Appellate Authority. 6.Accordingly, the impugned order is quashed and the matter is remitted to the third respondent to pass a fresh order, subject to the petitioner complying with the above condition. The petitioner is directed to cooperate with the third respondent and also file an additional reply, if any. 7.With the above directions, this Writ Petition stands disposed of. There shall be no order as to costs. Consequently, the connected Miscellaneous Petitions are closed. Index : Yes / No 04.08.2026 Internet : Yes / No mm To 1.The Commissioner of Commercial Tax, O/o.The Principal Secretary / Commissioner of Commercial Taxes Ezhilagam Chepauk Chennai- 600005 4/6 https://www.mhc.tn.gov.in/judis

mm