Facts of the Case

M/s.VKN Contracts was assessed for the tax period April 2023 to March 2024 by an order dated 03.12.2024, preceded by a show cause notice in Form GST DRC-01 dated 16.09.2024. The petitioner had not filed any reply to the show cause notice and approached the Madras High Court (Madurai Bench) belatedly, seeking to quash the assessment order.

Issues Involved

  1. Whether a GST assessment order can be quashed and remanded on terms even where the assessee neither replied to the show cause notice nor promptly approached the writ court.

Petitioner's Arguments

  • Sought quashing of the impugned order, notwithstanding the absence of a reply to the show cause notice, on the basis of the Court's settled conditional-relief practice in comparable matters.

Respondent's Arguments

  • The Additional Government Pleader took notice on behalf of the respondent; no separate opposition is recorded.

Court Order / Findings

  • Observed that the writ petition, challenging the correctness of the assessment order on merits after having slept over the show cause notice, could not ordinarily be entertained, and noted that the petitioner had never replied to the notice.
  • Nonetheless, following its consistent practice of coming to the rescue of similarly placed assessees, quashed the order on terms, subject to the petitioner depositing 25% of the disputed tax in cash from the Electronic Cash Register within 30 days.
  • Directed the petitioner to file a reply to the original show cause notice within that time, the quashed order to be treated as an addendum to the notice.
  • Directed the respondent to pass a fresh order on merits as expeditiously as possible, and clarified that non-compliance with the conditions would be deemed as if the writ petition was dismissed, permitting the department to proceed under the GST enactments.

Important Clarification

  • Even where an assessee fails to respond to the show cause notice and delays approaching the writ court, the Madras High Court (Madurai Bench) continues to grant conditional relief — quashing GST assessment orders on payment of 25% of the disputed tax and treating the quashed order as an addendum to the original show cause notice, so that a fresh order on merits can be passed after hearing the assessee.

Sections Involved

  • Section 73, TNGST/CGST Act, 2017 — determination of tax and passing of assessment order.
  • Form GST DRC-01 — show cause notice preceding the assessment order.

Decision – In Favour of

In favour of the Assessee (conditional relief).

Case Details

Madurai Bench of Madras High Court; W.P(MD)No.22909 of 2025 and W.M.P(MD)Nos.17984 & 17986 of 2025; Coram: Justice C. Saravanan; Order dated 25.08.2025.

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