Madras High Court
WP(MD)/26296/2026 of M/s. NPN Dairy Products Vs The Commercial Tax Officer/A on 26 October 2026
WP(MD) No. 26296 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 26-10-2026
CORAM
THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY
WP(MD) No. 26296 of 2026
CNR:{HCMD011274582026}
and
WMP(MD) Nos.19812 & 19813 of 2026
M/s.NPN Dairy Products,
4/490-1, Shanthipuram,
Dharapuram Road, Ambilikkai Post,
Dindigul - 624 612,
Represented by its Proprietor,
Palanichamy Natarajan.
..Petitioner(s)
Vs
1. The Commercial Tax Officer/
Asst. Commissioner (State Tax) (FAC),
O/o. The Commercial Tax Officer - Palani - II
Assessment Circle,
Commercial Tax Building,
Old Dharapuram Road, Palani - 624 601.
2. The Deputy Commercial Tax Officer/
Deputy State Tax Officer - I,
O/o.The Commercial Tax Officer - Palani - II
Assessment Circle,
Commercial Tax Building,
Kothaimangalam, Periya Aaudaiyar Kovil Privu, Palani - 624 618.
3. The Sub Registrar,
O/o.The Sub Registrar,
Oddanchatram,
Dindigul District.
..Respondent(s)
WP(MD) No. 26296 of 2026
PRAYER: Writ Petition, filed under Article 226 of the Constitution of India, praying this Court for issuance of a Writ of Certiorarified Mandamus to call for the records pertaining to impugned order by the first respondent vide order Reference No. ZD331222002968L dated 01.12.2022, subsequent impugned order by the first respondent vide order Reference No.
ZD330424254582I dated 30.04.2024 as well as the impugned order passed by the second respondent vide Order Reference No.ZD330424243128N
dated 29.04.2024 and subsequent third party recovery proceedings initiate by the first respondent and same was issued to the third respondent vide reference No.GSTIN: 33ADJPN4714A1Z1 dated 13.08.2026 insofar as in the financial year 2018-2019 and quash the same as illegal and consequently direct the respondents not to take any coercive recovery proceeding against the petitioner .
For Petitioner :
Mr.M.Hidayathullah
For R1 & R2 :
Ms.P.Sudarkodi Nachiyar,
Government Advocate (Taxes)
For R3 :
Mr.M.S.Parthiban
Government Advocate
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ORDER
Three orders relating to the assessment period 2018-2019 are challenged in this Writ Petition primarily on the ground of duplication.
2. Adverting to orders dated 01.12.2022 and 30.04.2024, learned counsel for the petitioner submits that the claims and the amounts demanded are identical. Even with regard to order dated 29.04.2024, he submits that
WP(MD) No. 26296 of 2026 only one additional issue relating to Section 17(5) is referred to and dealt with therein.
3. Learned Government Advocate (Taxes) for the first and second respondents submits that all the matters may be consolidated and dealt with upon remand.
4. On perusal of the three orders impugned herein, it is evident that the primary issue dealt with in the three orders is the wrong availment of input tax credit. An additional issue relating to blocked credit under Section 17(5) is dealt with in the order dated 29.04.2024. Two orders are under Section 74, and one order is under Section 73. On examining the orders, I find that the ingredients of Section 74 are not satisfied. Consequently, there is no basis to conduct proceedings under Section 74. As submitted by the learned Government Advocate (Taxes) for the first and second respondents, it is appropriate that these proceedings be consolidated. Towards that end, the orders impugned herein are liable to be set aside so as to ensure that there is no duplication.
5. Relying on the Electronic Cash Ledger, learned counsel for the petitioner submits that a sum of Rs.27,84,149/- was debited from the said
WP(MD) No. 26296 of 2026 ledger towards the tax demands under the impugned orders. This aspect is required to be verified and confirmed. He further adds that a sum of Rs.2,36,299/- was also recovered from the petitioner's bank account.
6. Subject to verifying and confirming the debit of an aggregate sum of Rs.30,20,448/- [Rs.27,84,149/- + Rs.2,36,299/-] towards the demands under the impugned orders, all the impugned orders are set aside and these matters are remanded for reconsideration on a consolidated basis. As indicated above, proceedings shall be conducted under Section 73 of the applicable GST enactments. After providing a reasonable opportunity to the petitioner, a fresh consolidated order shall be issued within a period of five months from the date of confirming the above-mentioned recovery.
7. This Writ Petition is disposed of on the above terms. There shall be no order as to costs. Consequently, connected Miscellaneous Petitions are closed. 26-10-2026 (1/4) Index: No Speaking Neutral Citation: No JEN
WP(MD) No. 26296 of 2026 To
1. The Commercial Tax Officer/ Asst. Commissioner (State Tax) (FAC), O/o. The Commercial Tax Officer - Palani - II Assessment Circle, Commercial Tax Building, Old Dharapuram Road, Palani - 624 601.
2. The Deputy Commercial Tax Officer/ Deputy State Tax Officer - I, O/o.The Commercial Tax Officer - Palani - II Assessment Circle, Commercial Tax Building, Kothaimangalam, Periya Aaudaiyar Kovil Privu, Palani - 624 618.
3. The Sub Registrar, O/o.The Sub Registrar, Oddanchatram, Dindigul District.
WP(MD) No. 26296 of 2026 SENTHILKUMAR RAMAMOORTHY, J. JEN WP(MD) No. 26296 of 2026 26-10-2026 (1/4)