Facts of the Case

  • The Parties Involved: The Petitioner is Tvl. Intersnack Cashew India Private Limited, represented by its Authorized Signatory, Mr. P. Tamilarasan, located in Thoothukudi, Tamil Nadu. The Respondent is the Assistant Commissioner (ST)-3, Tuticorin 3 Assessment Circle.
  • Impugned Order: The dispute arose from an assessment order passed by the Respondent in GSTIN No. 33AAHCR7804H1ZD along with a summary of the order in Form GST DRC-07 (Reference No. ZD330226040935H) dated 05.02.2026.
  • Approach to the High Court: Aggrieved by the tax assessment order, the petitioner bypassed the statutory appellate tribunal route and filed a Writ Petition (W.P(MD)No.14950 of 2026) under Article 226 of the Constitution of India before the Madurai Bench of the Madras High Court, seeking a Writ of Certiorari to quash the proceedings.

Issues Involved

  • Whether the impugned assessment order and the subsequent Form GST DRC-07 issued by the Revenue authority were arbitrary, perverse, and passed in gross violation of the principles of natural justice and judicial discipline.
  • Whether a writ petition under Article 226 of the Constitution of India can be entertained or maintained when an efficacious alternative statutory remedy (filing a first appeal before the GST Appellate Authority) is readily available to the taxpayer.

Petitioner’s Arguments

  • Constitutional Violations: The petitioner initially contended that the impugned order was passed in absolute violation of the principles of natural justice, making it arbitrary, perverse, and unconstitutional under Articles 14 and 19(1)(g) of the Constitution of India.
  • Subsequent Request for Withdrawal: During the course of the hearing on 08.06.2026, the learned counsel representing the petitioner modified their strategy and formally requested the Court to permit the withdrawal of the writ petition.
  • Liberty to Appeal: The petitioner prayed for legal liberty to approach the appropriate statutory Appellate Authority to contest the merits of the GST assessment order through the standard administrative legal process.

Respondent’s Arguments

  • Representation: The Revenue was represented by the Government Standing Counsel, Mr. R. Parthiban.
  • Maintainability: While the detailed counter-arguments on the merits were not fully recorded due to the petitioner's withdrawal, the standard legal stand of the department remained centered on the maintainability of the writ, pointing toward the pre-existing, alternate legal mechanisms built into the Goods and Services Tax framework for handling tax disputes.

Court Order / Findings

  • Recording of Endorsement: The Single Bench of Hon’ble Mr. Justice D. Bharatha Chakravarthy noted that the petitioner’s counsel made an explicit endorsement seeking the withdrawal of the writ petition with liberty to prefer a statutory appeal.
  • Dismissal as Withdrawn: Recording the submission and endorsement of the petitioner, the High Court ordered that the writ petition be dismissed as withdrawn.
  • No Costs & Closure of Motions: The Court ordered that no costs would be imposed on either party and subsequently closed the connected miscellaneous petition (W.M.P(MD)No.11249 of 2026).

Important Clarification

  • Exhaustion of Alternative Remedy: This case reiterates a foundational principle of Indian administrative and tax law: when a specialized tax statute provides a comprehensive mechanism for appeals, High Courts will generally allow or encourage petitioners to exit writ jurisdictions in favor of exhausting their statutory remedies, provided the liberty to do so is preserved.

Sections Involved

  • Article 226 of the Constitution of India: Constitutional provision invoking the writ jurisdiction of the High Court.
  • Form GST DRC-07: Under the Central Goods and Services Tax (CGST) / Tamil Nadu Goods and Services Tax (TNGST) Rules, this represents the formal summary of the order creating a demand.
  • Articles 14 and 19(1)(g) of the Constitution of India: Constitutional fundamental rights relating to equality before the law and the right to practice any profession, trade, or business.

Link to download the order - https://mytaxexpert.co.in/uploads/1783058618_310compressed.pdf

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