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Thangapandi Steels Vs State Tax Officer

Date: January 5, 2026

Court: High Court
Bench: Madras
Type: Writ Petition
Judge(s)/Member(s): C.SARAVANAN
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Subject Matter

Passing order on the same day an additional reply is filed doesn't mean non-application of mind or procedural irregularity

Adjudication

Summary

The Madras High Court dismissed a writ petition challenging an assessment order and summary in Form GST DRC-07. The Court found no procedural irregularities, noting the impugned order was detailed and considered the petitioner's replies. The petitioner was relegated to the Appellate Commissioner, contingent on depositing 25% of the disputed tax amount, upon which bank attachment would be lifted.

Summary of Facts and Dispute:
  1. Impugned Action: The impugned Order bearing GSTIN: 33BHWPP8330A1Z9/2020-2021 dated 01.02.2025, along with a summary of order in Form GST DRC-07 bearing Ref.No.ZD330225001400D dated 01.02.2025, which were preceded by a Show Cause Notice in GST DRC-01 dated 25.11.2024.
  2. Petitioner's Argument: The petitioner filed replies on 25.12.2024 and an additional reply on 01.02.2025, contending that the order suffered from irregularities or non-application of mind because it was passed on the same date as the additional reply.
  3. Core Question of Law: Whether the impugned assessment order, passed on the same day an additional reply was filed, demonstrates procedural irregularities or non-application of mind warranting interference under Article 226 of the Constitution of India, or if the petitioner should pursue the statutory appellate remedy.
Key Legal Issues & Findings:
Scope of Interference under Article 226 and Availability of Alternate Remedy

The Court examined the validity of the impugned order in light of the petitioner's submissions and the availability of statutory remedies.

  • Detailed Order: The Court found the impugned order to be detailed, and its reading indicated that the petitioner’s replies had been duly considered.
  • No Procedural Irregularities: The argument that the order being passed on the same day an additional reply was filed ipso facto meant non-application of mind or procedural irregularity was rejected.
  • Alternate Remedy: The Court held that the petitioner has an effective alternative remedy before the Appellate Commissioner.
  • Condition for Appeal: The petitioner is required to deposit 25% of the disputed tax in cash from their Electronic Cash Register within thirty (30) days from the date of receipt of the order.
  • Bank Attachment: Subject to the deposit of 25% of the disputed tax and provided no other arrears exist for any other tax period, the bank attachment shall be lifted.
Ruling:
  1. Outcome: The Writ Petition is disposed of, effectively dismissing the challenge to the assessment order and relegating the petitioner to the appellate remedy.
  2. Directions: The petitioner must deposit 25% of the disputed tax in cash from their Electronic Cash Register within thirty (30) days from the date of receipt of the order and file an appeal before the Appellate Commissioner within the same period. Upon compliance, bank attachment shall be lifted, and the appeal shall be disposed of on merits without reference to limitation.
  3. Liberty: Should the petitioner fail to comply with the stipulated deposit and appeal filing, the authorities are at liberty to proceed against the petitioner in accordance with law as if the Writ Petition was dismissed in limine.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

Mrs, K. Vasanthamala, learned Government Advocate takes notice for the Respondent.

2. This 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.

3. In this Writ Petition, the Petitioner has challenged the impugned Order bearing GSTIN: 33BHWPP8330A1Z9/2020-2021 dated 01.02.2025 along with summary of order in Form GST DRC-07 bearing Ref.No.ZD330225001400D dated 01.02.2025 of the Respondent, which were preceded by a Show Cause Notice in GST DRC-01 dated 25.11.2024 wherein the Petitioner was also called upon to file a reply by 25.12.2024.

4. The Petitioner has also replied to the same on 25.12.2024 followed by another reply dated 01.02.2025. The Order impugned herein is a detailed order and therefore does not merit any interference under Article 226 of the Constitution of India as no procedural irregularities is discernible from a reading of the same. Merely because the Order was passed on 01.02.2025 of which date the additional reply was filed ipso facto would not mean that the Order suffers from any kind of irregularities or non-application of mind.

5. A reading of the impugned Order also indicates that the Petitioner’s Reply has been considered while passing the impugned Order. Therefore, this Writ Petition is otherwise liable to be dismissed for the relief sought for.

6. At best, the Petitioner can be relegated to workout the remedy before the Appellate Commissioner subject to the Petitioner depositing 25% 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.

7. Subject to the Petitioner depositing the aforesaid disputed tax amount within the aforesaid period and filing of the Appeal before the Appellate Commissioner within such time, the same shall be disposed of on merits after hearing the Petitioner without reference to the aspect of limitation.

8. In case the Petitioner fails to comply with the above stipulation, the Authorities under the Act are at liberty to proceed against the Petitioner in accordance with law as if this Writ Petition was dismissed in limine

9. It is made clear that bank attachment shall be lifted subject to the deposit of 25% of the disputed tax as ordered above and the Petitioner is not in arrears of any other amount for any other tax period barring the amount demanded under the impugned Order.

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