Srk Traders v. The State Tax Officer Adjudication/Legal

Order U/s 74A

18.11.2025

18.11.2025

18.11.2025 Date of Filing of Writ Petition

05.03.2026

05.03.2026

05.03.2026

¶5It is noticed that the Petitioners replied to the respective Show Cause Notices and after reply were filed on 17.10.2025 by the respective Petitioners, further inspection was carried out on 10.11.2025 before the impugned Order was passed on 18.11.2025. Page4 of 10

¶6The case of the Petitioners appears to be that the reply of the respective Petitioners has not been considered and discussed in the impugned order and therefore, there is a manifest violation of Principles of Natural Justice.

¶7That apart, it is submitted that the amount proposed in the respective Show Cause Notices to the respective Petitioners as detailed above was exceeded in the impugned order, and therefore on this ground also impugned orders are liable to be interfered in terms of Section 75(7) of the respective GST Act, 2017.

¶8It is noticed that the allegations against the respective Petitioners is that they had not produced any document to substantiate inward movement of the goods for them to validly avail Input Tax Credit to pass on the same and therefore the machinery under Section 122(1)(ii) and 122(1)(vii) of the respective GST Enactment has been pressed against the Petitioner.

¶9It is also noticed that the Petitioner's respective GST registrations have also been cancelled on the days mentioned below: Page5 of 10 PROCEEDINGS FOR CANCELLATION OF REGISTRATION Events SRK in WP.No.11017 of 2026 KRK in WP.No.11022 of 2026 ANNAMALAI in WP.No.11025 of 2026 SCN for cancellation of registration

20.08.2025

20.08.2025

20.08.2025 Order for Cancellation of registration

04.09.2025

03.09.2025

09.09.2025 Application for revocation of cancellation of registration

24.09.2025

24.09.2025

24.09.2025 Order for revocation of cancellation of registration

11.12.2025

11.12.2025

11.12.2025 2nd Show Cause Notice for Cancellation

10.03.2026

10.03.2026

10.03.2026

¶10After the registration was cancelled, applications were moved for revocation of the cancellation of the GST Registration and the orders were passed on 11.12.2025 as detailed above. Thereafter, fresh notice has been issued on 10.03.2026 in FORM GST REG 17, once again to cancel the GST Registration of the Petitioner.

¶11At this juncture, the learned counsel for the Petitioner submits that the petitioner is willing to deposit 10% of the disputed tax as a pre condition for Page6 of 10 denova adjudication and has also made an endorsement to that effect in all the Court bundles, which is extracted hereunder:- In WP.No.11017 of 2026 " Petitioner undertakes to pay 10% of the tax demand" In WP.No.11022 of 2026 " Petitioner undertakes to pay 10% of the tax demand" In WP.No.11025 of 2026 " Petitioner undertakes to pay 10% of the tax remand"

¶12Recording the above consent, the Writ Petitions are remitted back to the Respondent to pass 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, in lieu of the impugned orders all dated 18.11.2025 and simultaneous separate orders in so far as the proposed cancellation of the GST Registration.

¶13Within such time, the Petitioners shall also file a reply to the Show Cause Notices issued in GST DRC-01 by substantiating the inward movement Page7 of 10 of the goods into the registered premises of the Petitioner or that they have passed on the Input Tax Credit to the customer together with requisite documents by treating the impugned Order dated 18.11.2025 as an addendum to the respective Show Cause Notices.

¶14In case the Petitioners comply with the above stipulations, the 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 if any, shall also stand automatically vacated.

¶15It 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.

¶16In 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. Page8 of 10

¶17Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner and he shall be heard the final report.

¶18This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed. 06-04-2026 Index: Yes/No Speaking/Non-speaking order Vv To The State Tax Officer Adjudication/Legal Office of the Joint commissioner (ST) Tirupur Intelligence Division 5/147, AEPC building, Kaikattipudur, tirupur Main Road, Avinashi 641 654 Page9 of 10 C.SARAVANAN J. VV WP Nos. 11017, 11022 and 11025 of 2026 and WMP Nos. 11957, 11959, 11963, 11965, 11968 and 11970 of 2026 06-04-2026 Page10 of 10 Page11 of 10

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 06-04-2026 CORAM THE HON'BLE MR JUSTICE C. SARAVANAN WP Nos. 11017, 11022 and 11025 of 2026 AND WMP Nos. 11957, 11959, 11963, 11965, 11968 and 11970 of 2026 WP.No.11017 of 2026 SRK Traders Represented by its Proprietor Mr. Kaleel Rahman 21, Elango Nagar Street,Aarona Bakery, TNK Puram,Tirupur - 641 602. ..Petitioner(s) Vs The State Tax Officer Adjudication/Legal Office of the Joint commissioner (ST) Tirupur Intelligence Division 5/147, AEPC building, Kaikattipudur, Tirupur Main Road, Avinashi 641 654 ..Respondent(s) WP.No.11022 of 2026 M/s.KRK Enterprises, Represented by its Proprietor Mr.Radhakrishnan Karnan No.6(1), Nesavalar Colony 1st Street, Tiruppur-641 602. ..Petitioner(s) Page1 of 10 Vs The State Tax Officer Adjudication/Legal Office of the Joint commissioner (ST) Tirupur Intelligence Division 5/147, AEPC building, Kaikattipudur, Tirupur Main Road, Avinashi 641 654. Respondent(s) WP No. 11025 of 2026 M/s Annamalai Enterprises Represented by its Propreitor Mr. Navaneethakrishnan Rajendran No. 6(1), Nesavalar Colony 1st Street,Tiruppur 641 602 ..Petitioner(s) Vs The State Tax Officer Adjudication/Legal Office of the Joint commissioner (ST) Tirupur Intelligence Division 5/147, AEPC building, Kaikattipudur, Tirupur Main Road, Avinashi 641 654 ..Respondent(s) Prayer in WP.No.11017 of 2026 : Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, call for the records of the Respondent herein in Impugned Order in GSTIN- 33FSYPK0173D1ZM/2025-26 dated 18.11.2025 for the period 2025-26 and quash the same. Page2 of 10 Prayer in WP No. 11022 of 2026 : Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, call for the records of the Respondent herein in Impugned Order in GSTIN 33BGNPR9979P1ZY/2025- 26 dated 18.11.2025 for the period 2025-26 and quash the same. Prayer in WP No. 11025 of 2026: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari,call for the records of the Respondent herein in Impugned Order in GSTIN33AQKPN9493J1Z4/2025-26 dated 18.11.2025 for the period 2025-26 and quash the same. For Petitioner(s): Ms.G Vardini Karthik (in all WPs') For Respondent(s): Mr. T.N.C. Kaushik, Additional Government Pleader COMMON ORDER Mr T.N.C. Kaushik, learned Additional Government Pleader takes notice for the Respondent. 2. These Writ Petitions are being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Additional Government Pleader for the Respondent. Page3 of 10 3. These cases were listed on several days and were adjourned at the request of the learned counsel for the Petitioner as well as the learned counsel for the Respondent. 4. In these Writ Petitions, these Petitioners have challenged the respective impugned orders passed under Section 74A on 18.11.2025 for the tax period 2025-26. The impugned orders in the case of respective Petitioners had preceded Notice in DRC-01 has detailed below: PROCEEDINGS UNDER SECTION 74A Events SRK in WP.No.11017 of 2026 KRK in WP.No.11022 of 2026 ANNAMALAI in WP.No.11025 of 2026 Show Cause Notice in DRC-01 22.09.2025 18.09.2025 24.09.2025 Reply to Show Cause Notice 17.10.2025 17.10.2025 17.10.2025 Further Inspection 10.11.2025 10.11.2025 10.11.2025