M/S.Palaniandavar Slab, v. The State Tax Officer,

ORDER Mr.C.Harsharaj, learned Special Government Pleader, takes notice for the respondent.

¶2With the consent of the learned counsel for the petitioner and the learned Special Government Pleader for the respondent, this writ petition is being disposed of at the time of admission.

¶3In this writ petition, the petitioner has challenged the impugned Order dated 10.12.2025 along with the summary order passed by the 2nd respondent for the tax period 2021-2022.

¶4By the impugned order, the demand related to Defect No.2, as proposed in the Show Cause Notice in DRC-01 dated 19.08.2025 has been confirmed. The Defect No.2 pertains to the claim of ineligible Input Tax Credit (ITC) under Section 17(5) of the respective GST enactments.

¶5The impugned order disallowed Input Tax Credit on the following items, invoking Section 17 of the respective GST enactments: S.No. Commodity/Service HSN Code SGST CGST IGST CESS Total Outdoor catering 99633 148839 148839 297678 Tiles 6901 7729 7729 15458 Granite 6802 47279 47279 94558 Sanitary Goods, taps, etc. 69101000, 7324,3922, 84818020, 84818010 722859 722859 1445718

¶6The petitioner's reply to Defect No.2 was as follows: "Nature of Business is Trading of Slab, Tiles, Granite, Cement roofing sheets and Hardware items we purchase and sale as such. We have actually purchased Cement Roofing Sheets, Tiles, Granite, and Hardware items from the supplier mentioned in the notice. These goods were genuinely purchased and used in the course or furtherance of our business, and hence qualify for ITC under Section 16(1) of the CGST Act, 2017. However, the M/s.Everest Industries Limited has inadvertently reported the said supplies under the wrong HSN code (Outdoor Catering) in their GSTR-1, which may have led to the mismatch. We confirm that the goods received are not falling under blocked credit under Section 17(5), and are directly related to our business activities. We kindly request you to treat the ITC as eligible, and consider this as a classification error on the part of the supplier. Supporting documents including purchase invoices are enclosed for your reference as an Annexure-II."

¶7The conclusion in the impugned order was as follows: "The Taxpayer reply along with supporting documents evidences has been submitted by the Taxpayer against the said defect supporting their claim. Hence the Taxpayer reply is not accepted and therefore Defect 2 is confirmed."

¶8In the above conclusion, there was no discussion on the petitioner's reply to the demand in Defect No.2. Furthermore, the conclusion was unintelligible.

¶9Considering the same, the impugned order is partly quashed, and the case is remitted back to the respondent to pass a fresh order on merits, insofar as the demand in Defect No.2 is concerned, within a period of three months from the date of receipt of a copy of this order.

¶10It is needless to state that, before passing any such order, the petitioner shall be heard.

¶11This writ petition stands disposed of with the above directions. Consequently, the connected miscellaneous petitions are closed. No costs.

17.02.2026 raja To The State Tax Officer, Office of the Commercial Tax Officer, Dharapuram Assessment Circle, Tiruppur-III.

C.SARAVANAN, J. raja

17.02.2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 17.02.2026 CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.Nos.6010 & 6011 of 2026 M/s. Palaniandavar Slab, Rep. by its Proprietor – Muthukumar P, 1, Udumalai Road, Dharapuram, Tiruppur, Tamil Nadu – 638656. ... Petitioner Vs. The State Tax Officer, Office of the Commercial Tax Officer, Dharapuram Assessment Circle, Tiruppur-III. ... Respondent Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, calling for the records relating to the impugned proceedings passed by the Respondent in the impugned order in GSTIN: 33AMTPM5637Q1Z4/2021-22 dated 10.12.2025 along with the consequential summary order under section 73 in FORM GST DRC 07 vide ref. no. ZD331225150208Q dated 10.12.2025 for the FY 2021-22 to quash the same. For Petitioner : M/s.R.Hemalatha For Respondent : Mr.C.Harsharaj Special Government Pleader