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2026 Supreme(Mad) 2323
IN THE HIGH COURT OF JUDICATURE AT MADRAS
SENTHILKUMAR RAMAMOORTHY, J.
Peenies Enterprises, Rep by its Proprietor G. Gopalakrishnan - Petitioner
Versus
The Assistant Commissioner (ST) (FAC), Tiruppur Lakshmi Nagar Assessment Circle, Tiruppur – Respondent
WP No. 28130 of 2026 and WMP Nos.30783 and 30786 of 2026
Decided On : 30-07-2026
Important Points
Subject
Taxation Law - Goods and Services Tax
Headnote
Facts of the case:
The petitioner challenged an order passed by the revenue authorities regarding a tax period, citing a breach of the principles of natural justice. It was contended that a partial pre-deposit had already been made and that the entire tax demand was subsequently recovered from the electronic liability ledger of the petitioner. The petitioner sought the quashing of the impugned order due to procedural lapses.
Findings of Court:
The Court observed that the allegation of a breach of natural justice necessitated a fresh consideration of the matter. It determined that subject to verifying that at least twenty-five percent of the tax demand had been remitted or recovered, the ends of justice would be met by setting aside the impugned order and remanding the case to the authorities to grant the petitioner a reasonable opportunity for a fresh hearing.
Issues: The main issues addressed were whether the impugned order was passed in violation of the principles of natural justice and whether the statutory requirements concerning the recovery or remittance of tax demand had been satisfied to warrant a remand of the proceedings.
Ratio Decidendi: Where procedural fairness is in question, the court balances the interest of statutory compliance regarding tax recovery with the fundamental requirement of giving the assessee a reasonable opportunity to be heard, thereby justifying a remand to ensure a fair and reasoned assessment order.
Result: Petition disposed of; impugned order set aside and matter remanded for reconsideration.
For the Petitioner: M/s.Vaani Sreekant Iyer
For the Respondent: Ms. G. Dhana Madhri, Government Counsel (Tax)
ORDER :
SENTHILKUMAR RAMAMOORTHY, J.
An order dated 18.06.2025 is assailed in this writ petition on the ground of alleged breach of principles of natural justice.
2. Ms.Dhana Madhri, learned Government Counsel (Tax), accepts notice on behalf of the respondents.
3. Learned counsel for the petitioner submits that 10% pre-deposit was made while filing the appeal. In addition, he submits that the entire tax demand was recovered from the petitioner’s electronic liability ledger. This aspect is required to be verified and confirmed.
4. Subject to verifying and confirming that not less than 25% of the tax demand under the impugned order was remitted / recovered, the impugned order is set aside and the matter is remanded for reconsideration. After providing a reasonable opportunity to the petitioner, a fresh order shall be issued within three (3) months from the date of confirming the above mentioned recovery.
5. The Writ Petition stands disposed of accordingly. No costs. Consequently, connected miscellaneous petitions are closed.
