Kgr Engineering v. The Deputy Commissioner (Ct),

ORDER In this Writ Petition, the Petitioner has challenged the impugned Order dated 30.08.2025, passed by the 2nd respondent for the tax period 2021-2022 whereby, the demand proposed in Show Cause Notice in Form GST DRC-01 dated 23.06.2025 has been confirmed against the petitioner as the petitioner failed to file reply to the said Show Cause Notice.

¶2The learned counsel for the petitioner submitted that the petitioner may be given one opportunity to file a reply and defend the case that the case may be remitted back to the respondents for fresh adjudication.

¶3At this stage, the learned counsel for the petitioner further submits that the petitioner is willing to pre-deposit 10% of the disputed tax confirmed by the impugned order for such de-novo adjudication.

¶4It is noticed that the limitation for filing an appeal under Section 107 of the respective GST enactments, 2017 against the impugned Order has already expired. The present Writ Petition has been filed only on 07.01.2026.

¶5Under similar circumstances, Orders have been quashed and cases have been remitted back to pass a fresh order on terms subject to such Assessee depositing 10% to 100% of the disputed tax depending upon the length of delay in approaching the Court. I do not find any reason to take a different view in this case.

¶6Therefore, to balance the interest of both parties viz., the Assessee and the Revenue, the impugned order is quashed and the case is remitted back to the 2nd Respondent to pass a fresh order on merits subject to the Petitioner depositing 10% of the disputed tax 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.

¶7Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 23.06.2025 together with requisite documents to substantiate the case by treating the impugned Order dated

30.08.2025 as an addendum to the Show Cause Notice dated 23.06.2025.

¶8In case the Petitioner complies with the above stipulations, the 2nd Respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such reply/pre-deposit. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner shall also stand automatically vacated.

¶9It is made clear that bank attachment shall be lifted subject to the petitioner depositing 10% of the disputed tax 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.

¶10In case the Petitioner fails to comply with any of the stipulations, the Respondent is at liberty to proceed against the Petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine today.

¶11Needless to state, any amount which has already recovered from the petitioner or paid by the petitioner against the tax liability confirmed by the impugned order shall be set off and adjusted towards the pre-deposit of 10% of the disputed tax as ordered above. This will be however subject to verification by the Respondents.

¶12Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.

¶13This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.

22.01.2026 ssn To:

1.The Deputy Commissioner, The Appellate Authority under GST, Varalakshmi Orchid, No.106, Ramakrishna Road, Salem-636 007.

2.The Assistant Commissioner (ST), Alagapuram Assessment Circle, 2nd Floor, Integrated Commercial Taxes Building, Pitchards Road, Hasthampatty, Salem-636 007. C.SARAVANAN, J., ssn and W.M.P.Nos.2210 and 2212 of 2026

22.01.2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.01.2026 CORAM : THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.Nos.2210 and 2212 of 2026 KGR Engineering, Represented by its Proprietor, R.Govindaraj, No.828/2, Rohini Garden, Mitapudhur, Salem-636 016. ... Petitioner Vs. 1.The Deputy Commissioner, The Appellate Authority under GST, Varalakshmi Orchid, No.106, Ramakrishna Road, Salem-636 007. 2.The Assistant Commissioner (ST), Alagapuram Assessment Circle, 2nd Floor, Integrated Commercial Taxes Building, Pitchards Road, Hasthampatty, Salem-636 007. ... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, calling for the records of the 2nd respondent's demand order made in Reference No.ZD330825368946P dated 30.08.2025 and quash the same and consequently direct the respondents to give an opportunity of personal hearing. For Petitioner : Mr.P.P.Suresh Babu For Respondents : Mr.TNC Kaushik Additional Government Pleader