Blue Med Surgicals vs Assistant Commissioner (ST) (FAC)

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2026 Supreme(Online)(Mad) 49634

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Senthilkumar Ramamoorthy, J
Blue Med Surgicals – Appellant
Versus
Assistant Commissioner (ST) (FAC) – Respondent
WP No. 19735 of 2026|W.M.P. No.21036 of 2026

Important Points

An assessment order may be set aside and remanded for re-adjudication when a taxpayer demonstrates willingness to remit a portion of disputed tax dues, provided a reasonable opportunity for hearing is granted by the assessing authority.

Subject

Taxation - Goods and Services Tax

Act Referred

Constitution of India: Art.226
CGST/TNGST Act, 2017: S.73

Headnote

The petitioner challenged an assessment order under Section 73 of the CGST/TNGST Act, 2017. The primary grievance concerned specific defects in the assessment, while others were admitted. The petitioner sought the quashing of the order on grounds of non-consideration of a rectification petition. The court found that matter required reconsideration upon the petitioner's willingness to deposit a portion of the disputed tax. The key issue was whether the assessment order could be sustained given the filing of a rectification petition and the partial admission of tax liability. The court reasoned that providing a reasonable opportunity for re-adjudication, conditioned upon the payment of 25% of the disputed tax, balances the interests of the revenue and the taxpayer. The writ petition is disposed of with the direction that the impugned order be set aside and the matter remanded for fresh consideration, subject to the deposit of 25% of the disputed tax within thirty days.

Advocates:
For the Appellants/Petitioners: H. Shridevi, Aparna Nandakumar
For the Respondents: R. Sethu Prabakaran

Table of Content
1. challenge to assessment order regarding specific tax defects and pending rectification. (Para 1 , 2 , 3)
2. conditioning court intervention on partial payment of disputed tax liability. (Para 4 , 5 , 6)

Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of certiorari to call for the records of the impugned Assessment Order in Ref. No. ZD330225216494N dated 21.02.2025, under Section 73 of the CGST/TNGST Act, 2017 , and uploaded the same along with the summary of order in DRC 07 for the fFinancial year 2020-21 from the files of the respondent herein and quash the same.

ORDER

An order dated 21.02.2025 is challenged insofar as it pertains to Defect Nos.1, 2, 3 and 5.

2. Mr.R.Sethu Prabakaran, learned Government Counsel (Tax), accepts notice for the respondent.

3. Learned counsel for the petitioner submits that a rectification petition was filed in respect of Defect Nos.1, 2, 3 and 5. While doing so, it is stated that Defect Nos.4, 6 and 7 were admitted and the admitted tax dues were discharged. She refers to the relevant DRC-03.

4. On instructions, learned counsel for the petitioner agrees to remit 25% of the disputed tax dues relating to Defect Nos.1, 2 3 and 5. An endorsement to that effect has been made on the bundle.

5. Subject to the condition that the petitioner remits 25% of the disputed tax demand relating to Defect Nos.1, 2 3 and 5, as agreed to, within thirty days from the date of receipt of a copy of this order, the impugned order is set aside and the matter is remanded for re consideration. After providing a reasonable opportunity to the petitioner, a fresh order shall be issued within three months from the date of remittance of 25% of the disputed tax demand relating to Defect Nos.1, 2 3 and 5.

6. The writ petition is disposed of on the above terms. Consequently, connected miscellaneous petition is closed. There shall be no order as to costs.