Ms Sri Thirumurugan Auto Mobiles v. The Deputy Commissioner Ct

ORDER Ms.Amirtha Poonkodi Dinakaran, learned Government Advocate takes notice for the Respondents.

¶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 Respondents.

¶3In this Writ Petition, the Petitioner has challenged the impugned Assessment Order dated 04.02.2025 and the impugned appeal rejection order dated 02.12.2025, whereby, the Petitioner's appeal dated 14.11.2025 against the impugned Assessment order which came to be rejected on the ground of limitation.

¶4Earlier, the Petitioner had filed an application for rectification of the aforesaid Assessment order vide application dated 25.11.2024 which came to be rejected on 01.07.2025.

¶5The learned counsel for the Petitioner would endeavor to draw attention to Circular No.237/31/2024 – GST dated 15.10.2024 bearing F.No.CBIC-20001/6/2024-GST.

¶6The said circular has been issued in the light of statutory intervention in view of the insertion of Section 16(5) to the respective GST enactments inserted by Finance (No.2) Act, 2024 (15 of 2024) dated

16.08.2024, vide SO 4253(E) with retrospective effect from 01.07.2017 has been inserted into the GST and corresponding amendments have been made to the TNGST Act, 2017.

¶7A reference to the aforesaid circular in the context of the above statutory intervention of the insertion of 16(5) and 16(6) of the respective GST enactments cannot be countenanced.

¶8That apart, application filed for rectification on 25.11.2024 is also not based on the allegations that the Petitioner had belatedly availed the credit.

¶9On the other hand, there is no ground for other issues within the belated availing of Input Tax Credit.

¶10It is noticed that the Petitioner has already pre-deposited 10% of the disputed tax confirmed vide impugned order dated 04.02.2025 at the time of filing of appeal on 14.11.2025 before the Appellate Authority.

¶11However, it is noticed that application for rectification on

25.11.2024 is not mandatory on the strength of the aforesaid circular of the Government, in view of the insertion of Section 16(5) to the respective GST enactments inserted by Finance (No.2) Act, 2024 (15 of 2024) dated

16.08.2024, vide SO 4253(E) with retrospective effect from 01.07.2017.

¶12At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 15% of the disputed tax, as a condition for denovo adjudication.

¶13Under similar circumstances, Orders have been quashed and cases have been remitted back to the Respondent to pass a fresh order on terms subject to such Assessee depositing 25% 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.

¶14Therefore, to balance the interest of both parties viz., the Assessee and the Revenue, the case is remitted back to the 1st Respondent to pass a fresh order on merits subject to the Petitioner depositing 15% of the disputed tax over and above 10% already pre-deposited at the time of filing of an appeal 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.

¶15In case there has been any recovery or any other amount paid by the Petitioner towards the tax liability confirmed vide impugned order dated 04.02.2025, the same shall be set off against the pre-deposit of 15% as ordered above. This shall however be subject to verification by the Respondents.

¶16In case the Petitioner complies with the above stipulations, the Appellate Authority, viz., 1st Respondent shall dispose of the appeal on merits without further reference to limitation. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner shall also stand automatically vacated.

¶17It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 15% 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.

¶18In case the Petitioner fails to comply with any of the stipulations, the 2nd 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.

¶19Needless to state, before passing any such order, the 2nd Respondent shall give due notice to the Petitioner.

¶20This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.

29.01.2026 jas To:

1.The Deputy Commissioner (CT), GST – Aappellate Authority, Namakkal (Rural), Hasthampatti, Salem, Pincode – 636 007.

2.The Assistant Commissioner (ST), Namakkal (Rural) Circle, Namakkal – 637 001.

C.SARAVANAN, J. jas and W.M.P.Nos.2567, 2569 and 2571 of 2026

29.01.2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 29.01.2026 CORAM : THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.Nos.2567, 2569 and 2571 of 2026 M/s.Sri Thirumurugan Auto Mobiles Proprietrix R.Chamundeeswari. ... Petitioner Vs. 1.The Deputy Commissioner (CT), GST – Aappellate Authority, Namakkal (Rural), Hasthampatti, Salem, Pincode – 636 007. 2.The Assistant Commissioner (ST), Namakkal (Rural) Circle, Namakkal – 637 001. ... Respondents 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 second respondent herein GSTIN: 33CNIPS4305M1ZQ/2020-21 dated 04.02.2025 and consequential rejection order passed by the first respondent in ARN # AD3311250237289 dated 02.12.2025 and quash the same. For Petitioner : Mr.S.Senthil For Respondents : Ms.Amirtha Poonkodi Dinakaran Government Advocate