A Perumal v. The Deputy State Tax Officer 2

ORDER Ms.Amirtha Poonkodi Dinakaran, learned Government Advocate takes notice for the Respondent. Page2 of 6

¶2This 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 Government Advocate for the Respondent.

¶3In this Writ Petition, the Petitioner has challenged the impugned Show Cause Notice in Form GST DRC – 01 dated 29.09.2025 passed by the Respondent, wherein the Petitioner was proposed to pay the tax for the Tax Period 2019 – 2020, on account of the Hon'ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying.

¶4The learned counsel for the Petitioner submits that the challenge to the impugned Show Cause Notice is that the decision is pending before the Hon'ble Supreme Court on the tax payable on reversed charge mechanism on account of the Hon'ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying.

¶5It is submitted that the other issue is concerned, the Respondent shall pass a separate order on merits.

¶6Under similar circumstances, cases have been remitted back to the Respondent to pass a order(s) on terms subject to such Assessee depositing 10% Page3 of 6 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.

¶7Therefore, the case is remitted back to the Respondent to pass an order subject to the Petitioner depositing 10% of the disputed tax in cash 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.

¶8Recovery of balance tax shall be however subject to orders of the Hon'ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying. In case decision of the Hon'ble Supreme Court is in favour of the Petitioner, the tax amount now directed to be pre-deposit shall be refunded back or re-credited in the Petitioner's Electronic Cash Register. In case, the Hon'ble Supreme Court decides the case against the Petitioner, the Petitioner shall pay the tax amount subject to such amount as may be ordered to be paid.

¶9Therefore, the Petitioner shall file a reply to the Show Cause Notice dated 29.09.2025 in GST DRC-01 together with requisite documents to substantiate the defence within a period of thirty (30) days from the date of receipt of a copy of this order. Page4 of 6

¶10In case the Petitioner complies with the above stipulations, the Respondent shall proceed to pass a final order in line with the order of the Hon'ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner shall also stand automatically vacated.

¶11It is made clear that attachment of Petitioner's bank account shall be lifted subject to Petitioner depositing 10% of the disputed tax as ordered above and subject to Petitioner is not being in arrears of any other amount barring the amount demanded under the impugned Show Cause Notice.

¶12In 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.

¶13Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.

Page5 of 6

¶14This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed. 05-03-2026 jas To The Deputy State Tax Officer 2 O/o The Assistant Commissioner (ST) Krishnagiri 2 Assessment Circle, Hosur Division Krishnagiri. WPoNo.o8867oofo2026 C.SARAVANAN,oJ. jas WPoNo.o8867oofo2026 and W.M.P.Nos.9553oando9556oofo2026 05-03-2026 Page6oofo6

Page1 of 6 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 05-03-2026 CORAM THE HON'BLE MR JUSTICE C. SARAVANAN and W.M.P.Nos.9553 and 9556 of 2026 A Perumal ..Petitioner(s) Vs The Deputy State Tax Officer – 2, O/o The Assistant Commissioner (ST), Krishnagiri - 2 Assessment Circle, Hosur Division, Krishnagiri. ..Respondent(s) Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, to call for the records of the respondent in his proceeding in GSTIN:33BGEPP4955L1ZZ (A.Y.2019-20) and quash the proceeding dated 29.09.2025 passed therein. For Petitioner(s): Mr.Raveendran B For Respondent(s): Ms.Amirtha Poonkodi Dinakaran Government Advocate