Facts of the Case

P.Senthilkumar challenged an order dated 10.09.2024 and a subsequent rectification order in Form GST DRC-08 dated 01.04.2025, both for the tax period 2018-19, issued by the Assistant Commissioner, Chokkikulam Assessment Circle. The order had been preceded by an intimation in DRC-01A dated 09.05.2024, a show cause notice in DRC-01 dated 21.06.2024, and three personal hearing notices, none of which the petitioner had responded to, resulting in confirmation of the demand.

Issues Involved

  1. Whether a GST demand confirmed after the assessee failed to respond to multiple notices and personal hearing opportunities can nonetheless be quashed and remitted on terms.

Petitioner's Arguments

  • Sought quashing of both the original and rectification orders, invoking the Court's settled conditional-relief practice extended in comparable matters.

Respondent's Arguments

  • The Additional Government Pleader consented to disposal of the writ petition at the admission stage itself.

Court Order / Findings

  • Noted that in similar circumstances, the Court has come to the rescue of such petitioners by quashing the impugned order on terms subject to payment of 25% of the disputed tax, and found no reason to take a different view.
  • Quashed both the impugned order and the rectification order, 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 DRC-01 notice, treating the impugned orders as an addendum to it, with the respondent to pass fresh orders on merits within 3 months of compliance.
  • Clarified that in case of non-compliance with any condition, the respondent is at liberty to proceed against the petitioner as if the writ petition was dismissed in limine.

Important Clarification

  • Even a GST demand confirmed after the assessee failed to respond to an intimation, a show cause notice, and repeated personal hearing opportunities may still be quashed on terms (typically 25% pre-deposit) by the Madras High Court, Madurai Bench, reflecting its now well-established conditional-relief practice — provided the assessee thereafter properly contests the matter on remand within the stipulated time.

Sections Involved

  • Section 73, TNGST/CGST Act, 2017 — determination and demand of tax.
  • Form GST DRC-01A, DRC-01 & DRC-08 — pre-SCN intimation, show cause notice, and rectification order respectively.

Decision – In Favour of

In favour of the Assessee (conditional).

Case Details

Madurai Bench of Madras High Court; W.P.(MD) No. 22557 of 2025 and W.M.P.(MD) No.17701 of 2025; Coram: Justice C. Saravanan; Order dated 19.08.2025.

Link to Download the Order

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