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2026 Supreme(Online)(Mad) 73408
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice SENTHILKUMAR RAMAMOORTHY
H2B Holiday Booking Hub India Private Limited – Appellant
Versus
The Deputy State Tax Officer-1 – Respondent
Writ Petition | WMP Nos.30791 and 30794 of 2026
Important Points
Subject
Taxation Law - Writ Jurisdiction
Act Referred
Headnote
(B) Writ jurisdiction - Discretion of Court - Where appeal period has expired, Court may exercise discretion to remand a matter for fresh decision to ensure compliance with natural justice, subject to equitable conditions such as partial pre-deposit of tax. (Paras 3, 4)
Facts of the case:
The petitioner challenged an order passed by the tax assessment authority, alleging a breach of the principles of natural justice. Having failed to file an appeal within the statutory period of limitation, the petitioner approached the High Court seeking the issuance of a writ of certiorari to set aside the order.
Findings of Court:
The Court observed that since the period of limitation for filing an appeal had expired, it could exercise its extraordinary jurisdiction upon conditions. Noting the petitioner's willingness to remit 50% of the disputed tax demand, the Court set aside the impugned order and remanded the matter to the authority for fresh consideration. The authority was directed to provide a reasonable opportunity to the petitioner and pass a fresh order within three months, with a consequential direction to raise any existing bank account attachments upon compliance.
Issues: Whether the Court should entertain a writ petition when statutory remedies are barred by limitation, and whether a conditional remand is an appropriate mechanism to resolve grievances of natural justice violations in tax assessments.
Ratio Decidendi: In instances where an assessment order is challenged for violating natural justice and the statutory appeal period has lapsed, the Court can exercise its discretion to remand the matter for re-adjudication, provided the petitioner demonstrates fairness by undertaking to pre-deposit a portion of the disputed liability, thereby maintaining a balance between the right to a fair hearing and the protection of revenue.
Result: Writ petition disposed of; impugned order set aside, matter remanded subject to the condition of remitting 50% of the disputed tax.
For the Appellants/Petitioners: M.R. Raghunandan Sriram
For the Respondents: G. Dhana Madhri
ORDER
An order dated 13.02.2024 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 respondent.
3. The period of limitation for filing an appeal has expired. On instructions, learned counsel for the petitioner agrees to pay 50% of the disputed tax demand as a condition for remand. An endorsement to that effect is made on the bundle.
4. Subject to the condition that the petitioner remits 50% of the disputed tax demand, 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 50% of the disputed tax demand. Subject to fulfilment of the above condition, the attachment, if any, of the bank account of the petitioner in relation to the impugned order shall stand raised.
5. The writ petition is disposed of on the above terms. Consequently, connected miscellaneous petitions are closed. There shall be no order as to costs.
