Case Note & Summary
The petitioner, Sri Lakshmi Enterprises, a partnership firm represented by its partner Mr. D. Venkatrayudu, filed a writ petition under Article 226 of the Constitution of India before the Madras High Court challenging an order dated 19.11.2025 passed by the Deputy State Tax Officer-2, Peelamedu North Circle, Coimbatore. The impugned order pertained to the assessment under the GST laws for the period 2021-2022. The petitioner contended that the order was passed without providing a reasonable opportunity of hearing, thereby violating principles of natural justice. The writ petition was filed shortly after the expiry of the limitation period. The respondent was represented by Mr. R. Sethu Prabakaran, Government Counsel (Tax), who accepted notice. Upon perusal of the impugned order, the court found that it was indeed issued without hearing the petitioner. The petitioner's counsel, on instructions, agreed to remit 25% of the disputed tax demand as a condition for remand, and an endorsement to that effect was made on the bundle. The court, therefore, disposed of the writ petition by setting aside the impugned order subject to the condition that the petitioner remits 25% of the disputed tax demand (after giving credit to any amount already recovered) within thirty days from the date of receipt of a copy of the order. The matter was remanded for re-consideration, with a direction to the respondent to provide a reasonable opportunity of hearing to the petitioner and to issue a fresh order within three months from the date of remittance of the 25% amount. The connected miscellaneous petitions were closed, and no order as to costs was made.
Headnote
A) Constitutional Law - Writ of Certiorari - Violation of Natural Justice - Article 226 of the Constitution of India - Petitioner challenged GST assessment order on ground of no hearing - Court found order was issued without hearing petitioner - Held that order violated principles of natural justice and was liable to be set aside subject to condition of 25% pre-deposit (Paras 1-5). B) Goods and Services Tax - Assessment Order - Remand with Condition - Tamil Nadu Goods and Services Tax Act, 2017 - Petitioner agreed to remit 25% of disputed tax demand as condition for remand - Court set aside order and remanded for fresh consideration after providing reasonable opportunity - Held that conditional remand balances revenue interest and right of hearing (Paras 4-5).
Issue of Consideration
Whether the impugned GST assessment order dated 19.11.2025 was passed without providing a reasonable opportunity of hearing to the petitioner, and whether the order should be set aside and remanded for fresh consideration.
Final Decision
The impugned order dated 19.11.2025 is set aside subject to the condition that the petitioner remits 25% of the disputed tax demand (after giving credit to the amount already recovered) within thirty days from the date of receipt of a copy of this order. The matter is remanded for re-consideration, and the respondent shall provide a reasonable opportunity of hearing to the petitioner and issue a fresh order within three months from the date of remittance of 25% of the disputed tax demand. The writ petition is disposed of, and connected miscellaneous petitions are closed. No order as to costs.
Law Points
- Natural justice
- reasonable opportunity of hearing
- remand with condition
- pre-deposit of disputed tax
