Topline Associates v. The Assistant Commissioner (St)(Fac)

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01-04-2026 CORAM THE HON'BLE MR JUSTICE C. SARAVANAN WP Nos. 12008 and 12021 of 2026 and WMP Nos. 13105, 13106, 13118 and 13119 of 2026 WP.No.12008 of 2026 Topline Associates Rep. by its Partner, Mohammed Rizwan, 2, 10/41, Anaikar Complex, M.V. Badran Street, Periamet, Chennai, Tamil Nadu-600 003. ..Petitioner(s) Vs The Assistant Commissioner (ST)(FAC) (Also known as the commercial tax officer) Vepery Assessment circle, No.1, Room No.A-110, Ct Annex Building, 1st Floor, Greems Road, Chennai-600 006 ..Respondent(s) WP No. 12021 of 2026 Topline Associates Rep. by its Partner, Mohammed Rizwan, 2, 10/41, Anaikar Complex, M.V. Badran Street, Periamet, Chennai, Tamil Nadu-600 003. ..Petitioner(s) Page1 of 7 Vs The Assistant Commissioner (ST)(FAC) (Also known as the commercial tax officer) Vepery Assessment circle, No.1, Room No.A-110, Ct Annex Building, 1st Floor, Greems Road, Chennai-600 006 ..Respondent(s) Prayer in WP.No.12008 of 2026

: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, calling for the records on the files of the learned Respondent herein in GSTIN/33AAFFT3692N1ZO/ 2021-22 in FORM GST DRC-07 in Order Reference No. ZD3312252574993 dated 16.12.2025 and quash the same. Prayer in WP.No.12021 of 2026: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, calling for the records on

the

files

of

the

learned

Respondent

herein

in GSTIN/33AAFFT3692N1ZO/2021-22 in FORM GST DRC-07 in Order Reference No. ZD331225257742G dated 16.12.2025 and quash the same WP Nos. 12008 and 12021 of 2026 For Petitioner(s): Mr.B Syed Abdul Wakeel For Respondent(s): Mr.V.Prashanth Kiran, Government Advocate Page2 of 7 COMMON ORDER Mr.V.Prashanth Kiran, learned Government Advocate takes notice for the Respondent.

¶2These 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 Government Advocate for the Respondent.

¶3The Petitioner is before this Court against two orders, both dated

16.12.2025, whereby the proposal in Show Cause Notices dated 02.09.2025 and 23.09.2025 respectively that preceded the respective impugned orders has been confirmed.

¶4The case of the Petitioner is that the Petitioner has not only been denied the benefit of exemption, but has also been denied the proportionate Input Tax Credit. It is submitted that it is the case of the Respondent that the Petitioner was not entitled to exemption, the Petitioner should be allowed the proportionate Input Tax Credit on the inputs/input service reversed by the Petitioner.

¶5Prima facie, there is an indication that there is a contradictory in the stand taken by the respondent in the respective proceedings. Page3 of 7

¶6At this juncture, the learned counsel for the Petitioner submits that the Petitioner is also willing to pre deposit 10% of the disputed tax as a condition for denova adjudication and has also made an endorsement to that effect in the Court bundle, which is extracted hereunder:- " The Petitioner undertakes to pay 10% of the disputed tax as pre-condition as per the Order of the Hon'ble Court to participate in the proceedings after a fresh Show Cause Notice is issued."

¶7Considering the same, I am inclined to remit the cases back to the respondent to issue a composite notice within a period of 45 days from the date of receipt of a copy of this Order, subject to the Petitioner depositing 10% of the disputed taxes respectively 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.

¶8The Petitioner shall thereafter file a reply to the said Composite Show Cause Notices in lieu of the Show Cause Notices in GST DRC-01 dated

02.09.2025 and 23.09.2025 respectively, together with requisite documents to substantiate the case by treating the impugned Order dated 16.02.2025 as an addendum to the respective Show Cause Notices. Page4 of 7

¶9In case the Petitioner complies 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.

¶10It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 10% of the disputed taxes respectively 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.

¶11In 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.

¶12Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner. Page5 of 7

¶13These Writ Petitions are disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed. 01-04-2026 Index: Yes/No Speaking/Non-speaking order Vv To The Assistant Commissioner (ST)(FAC) (Also known as the commercial tax officer) Vepery Assessment circle, No.1, Room No.A-110, Ct Annex Building, 1st Floor, Greems Road, Chennai-600 006 Page6 of 7 C.SARAVANAN J. VV WP Nos. 12008 and 12021 of 2026 and WMP Nos. 13105, 13106, 13118 and 13119 of 2026 01-04-2026 Page7 of 7 Page8 of 7