Case Note & Summary
The petitioner, Amutham Foods, a proprietary concern represented by its proprietor Palanisamy Subha, filed a writ petition under Article 226 of the Constitution of India before the Madras High Court. The petitioner challenged an order dated 19.11.2025 passed by the Deputy State Tax Officer-II, Vadavalli Circle, Coimbatore, in Form GST DRC-07 under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act). The petitioner sought a writ of certiorarified mandamus to quash the order and to direct the respondent to drop all recovery proceedings and lift the bank attachment. The primary grievance was that the petitioner did not have a reasonable opportunity to contest the tax demand on merits. The court observed that the impugned order was issued without hearing the petitioner, and the writ petition was filed shortly after the expiry of the limitation period. During the hearing, 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, accepting this undertaking, set aside the impugned order subject to the condition that the petitioner remits 25% of the disputed tax demand 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 pass a fresh order within three months from the date of remittance of the 25% amount. The writ petition was disposed of on these terms, and the connected miscellaneous petitions were closed. No order as to costs was made.
Headnote
A) Constitutional Law - Writ Jurisdiction - Certiorarified Mandamus - Article 226 of the Constitution of India - Petitioner challenged order under Section 73 of TNGST Act, 2017 on ground of no reasonable opportunity of hearing - Court found order was issued without hearing petitioner - Held that violation of natural justice warrants setting aside of order and remand for fresh consideration, subject to condition of 25% pre-deposit of disputed tax demand (Paras 1-5).
Issue of Consideration
Whether the impugned order under Section 73 of the TNGST Act, 2017, passed without hearing the petitioner, should be set aside and the matter remanded for fresh consideration.
Final Decision
The impugned order is set aside subject to the condition that the petitioner remits 25% of the disputed tax demand within thirty days from the date of receipt of a copy of this order. The matter is remanded for re-consideration. After providing a reasonable opportunity to the petitioner, a fresh order shall be issued within three months from the date of remittance of 25% of the disputed tax demand. The writ petition is disposed of on the above terms. Connected miscellaneous petitions are closed. No order as to costs.
Law Points
- Natural justice
- reasonable opportunity of hearing
- remand with condition
- pre-deposit for remand
- Section 73 of Tamil Nadu Goods and Services Tax Act
- 2017
