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2026 Supreme(Online)(Mad) 31417
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.SARAVANAN, J
M/s. Four Brothers Apparels Private Limited – Appellant
Versus
The Commercial Tax Officer – Respondent
W.M.P.Nos.12124 and 12128 of 2026
For the Appellants/Petitioners: Mr.P.Bhagavathi
For the Respondents: MrTNC Kaushick Additional Government Pleader
Remand for de novo GST adjudication upon deposit and reply, overriding limitation on condonable appeal.
Headnote:The petitioner challenged an order confirming tax demand for GST period April 2021 to March 2022 under relevant GST provisions, issued without proper reply to Show Cause Notice (DRC-01 dated 20.05.2024), with appeal rejected on limitation grounds. Essential facts include late appeal filing within condonable period and willingness to deposit additional 15% tax. Court found merit in remanding for fresh adjudication upon compliance. Key issue framed as whether impugned order confirming demand sans reply and rejecting condonable appeal was sustainable. Ratio decidendi emphasizes opportunity for de novo adjudication on merits post-compliance with deposit and reply requirements, treating impugned order as addendum to SCN, without limitation bar. Writ petition disposed; matter remitted to respondent for fresh order on merits subject to petitioner depositing additional 15% tax and filing reply within 30 days.
| Table of Content |
|---|
| 1. admission-stage disposal against impugned gst order. (Para 2 , 3) |
| 2. petitioner's offer of additional deposit. (Para 4) |
| 3. remand conditions: deposit, reply, de novo order. (Para 5 , 7 , 8 , 9) |
| 4. non-compliance consequences; petition disposed. (Para 10 , 11 , 12) |
ORDER
MrTNC Kaushick, learned Additional Government Pleader takes notice for the Respondent.
2. This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent.
3. In this Writ Petition, the petitioner is before this Court against the impugned order dated 08.04.2025, whereby, the proposal in Show Cause Notice in DRC 01 dated 20.05.2024 issued for the tax period April 2021 to March 2022 confirmed in the absence of a proper reply to the Show Cause Notice in DRC 01. The petitioner filed an appeal beyond the limitation, but within the condonable period limitation before the Appellate Authority on
21.07.2025 which has been rejected on 03.09.2025.
4. The learned counsel for the petitioner further submits that the petitioner is willing to deposit another 15% of the deposited tax over and above 10% deposit at the time of filing of an appeal on 21.07.2025 as a condition for denovo adjudication confirmed by the impugned order. The learned counsel for the Petitioner has also made the following endorsement to that effect in the Court bundle which has been extracted hereunder:-
“The petitioner has already deposited 10% towards the appeal filed against the impugned order and the petitioner hereby acknowledge to pay 15% of the disputed amount.”
5. In view of the above, the case is remitted back to the Respondent to pass a fresh order on merits subject to the Petitioner depositing 15% of the disputed tax over and above the 10% already deposited while filing the appeal, in cash or from the Petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order. 6. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 20.05.2024 together with requisite documents to substantiate the case by treating the impugned Order dated
08.04.2025 as an addendum to the Show Cause Notice dated 20.05.2024
7. In case the Petitioner complies with the above stipulations, the Respondent shall proceed to pass a final order on merits and in accordance with law without further reference to limitation. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner shall also stand automatically vacated.
8. It is made clear that bank attachment shall be lifted subject to the Petitioner additionally depositing 15% of the disputed tax confirmed vide each impugned order as ordered above and the Petitioner not being in arrears of any other amount for any other tax period barring the amount demanded under the impugned Order.
9. Within such time, the Petitioner shall also file a detailed reply to the Show Cause Notice in GST DRC-01 whihch preceded in the impugned order by treating the impugned Order dated 08.04.2025 as an addendum
10. In case the Petitioner fails to comply with any of the stipulations, the Respondents are at liberty to proceed against the Petitioner to recover the tax in accordance with law as if the Writ Petition was dismissed in limine today.
11. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
12. This Writ Petition stand disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
