S.Murugesan vs. The Deputy Commercial Tax Officer
Facts
The petitioner, S. Murugesan, filed a writ petition challenging an order dated 16.12.2025, issued by the Deputy Commercial Tax Officer, Tirunelveli Junction. This order, passed under Section 73 of the TNGST/CGST Act, 2017, pertains to the financial year 2021-22. The petitioner sought to quash this order and consequential DRC-07, and requested a fresh reconsideration of the matter. The primary ground for the challenge was a breach of the principles of natural justice, as the impugned order was allegedly passed without hearing the petitioner. The petitioner agreed to pay 25% of the disputed tax demand as a condition for remand.
Held
The Court held that the impugned order dated 16.12.2025 was indeed passed without hearing the petitioner, constituting a breach of the principles of natural justice. Consequently, the Court set aside the impugned order. The Court directed the petitioner to remit 25% of the tax demand under the impugned order within 30 days from the date of receipt of a copy of the order. Upon fulfillment of this condition, the bank attachment related to the impugned order would be raised. The matter was remanded to the respondent for a fresh consideration, with directions to provide a reasonable opportunity to the petitioner to contest the matter on merits. A fresh order is to be issued within 5 months from the date of remittance of 25% of the tax demand. The ratio decidendi is that an order passed without adhering to the principles of natural justice is unsustainable and liable to be set aside, subject to certain conditions for reconsideration.
Key Issues
1. Whether the impugned order dated 16.12.2025, passed under Section 73 of the TNGST/CGST Act, 2017, is liable to be quashed on the ground of breach of principles of natural justice, specifically for not affording a reasonable opportunity of hearing to the petitioner? Petitioner's Contention: The petitioner argued that the order was passed without providing a proper hearing, thus violating the principles of natural justice. They sought a remand for fresh consideration after proper transaction-wise reconciliation and an opportunity to present their case. Respondent's Contention: The respondent, represented by the learned Government Advocate, accepted notice. The judgment does not record any specific arguments made by the respondent against the petitioner's claim of breach of natural justice, other than accepting notice and the subsequent directions.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 15-10-2026 CORAM THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY CNR:{HCMD011448042026} AND WMP(MD) No. 22590 of 2026 WMP(MD) No. 22591 of 2026 S.Murugesan, S/o.Samuthiram, No.11/81, Bazaar Street, Keelathenkalam, Thalaiyuthu, Tirunelveli District - 627357. ..Petitioner(s)
Vs The Deputy Commercial Tax Officer, Tirunelveli Junction, Commercial Taxes Department, Tirunelveli District. ..Respondent(s) PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, calling for the records pertaining to the Impugned Final Order in DRC-07 vide Reference No. ZD3312252577848 dated 16.12.25, passed b Respondent under Section 73 of the TNGST/CGST Act, 2017 for the Financial Year 2021-22, and quash the same and the consequential DRC-07, and consequently direct the Respondent to reconsider the matter afresh after undertaking proper transaction-wise reconciliation of the SIPCOT GSTR-7/TDS figures with the Petitioners GST records, after considering the Form GST ASMT-11 dated 16.03.23 and the other __________
The judgment continues below.
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