The Madras High Court issued a ruling on a writ petition filed by Bhairavi Metal Works against the State Tax Officer, Thirukazukundram Assessment Circle, contesting an order dated December 08, 2025, passed by the GST authorities u/s 73 of the Tamil Nadu GST Act, 2017, read with the CGST Act, 2017. The case concerns AY 2021-22.
A GST show-cause notice was issued to the applicant on July 06, 2025, before the impugned order, in which the applicant was directed to appear for a personal hearing.
But the applicant neither appeared for the hearing nor gave any response to the notice. Subsequently, GST authorities passed the impugned order on December 08, 2025.
The dissatisfied applicant from the above order submitted a plea before the Madras High Court within the legal time limit on February 23, 2026.
The applicant in the hearing said that it is willing to pay a pre-deposit of 10% of the disputed tax as a condition for denovo adjudication (fresh consideration of the case).
Upon examining the facts of the case, the Court set aside the impugned GST assessment order and remanded the matter to the tax authorities for fresh consideration. The petitioner has been directed to deposit 10% of the disputed tax amount, either in cash or through the petitioner’s Electronic Cash Ledger, within 30 days. The Court also directed the petitioner to submit a detailed reply to the original show cause notice (SCN) along with all relevant supporting documents.
If the applicant adhered to the norms mentioned above, then the tax authority should pass a fresh order as per the merits of the case within the time limit of 3 months.
The Court said that any bank account attachment against the applicant shall be automatically vacated once the specified conditions are fulfilled.
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But if the applicant fails to follow the above conditions, then the tax authorities shall be free to recover the tax within the law. The court disposed of the writ petition with these directions.
| Case Title | Bhairavi Metal Works vs. State Tax Officer |
| Case No | WP No. 8468 of 2026 and WMP Nos 9167 and 9168 of 2026 |
| For Petitioner | Mr. Parthiban V |
| For Respondent | Mr.TNC kaushik |
| Madras High Court | Read Order |
