WP/43109/2026 of Traxon Logistics Vs The State Tax officer on 16 October 2026

ORDER

Mr.R.Sethu Prabakaran, learned Government Advocate (Tax) takes notice for the Respondents 1 to 3.

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W.P.No.43109 of 2026

2. This Writ Petition has been filed by the Petitioner seeking to quash the Order dated 15.12.2025 bearing Ref.No.GSTIN 33APCPS9944J2ZC/2021-22 and the Summary of the Order in GST DRC-07 dated 15.12.2025 bearing Reference No.ZD331225221657J passed by the 1st Respondent.

3. The learned counsel for the Petitioner submitted that upon scrutinizing the returns filed by the Petitioner for the Financial Year 2021-22, following discrepancies were found by the Officials:

(i) Short payment of tax on taxable supplies reported in GSTR-09

(ii) Short payment of tax under RCM

(iii) Excess claim of ITC

(iv) ITC to be reversed on non-business transactions & exempt supplies

(v) Claim of ineligible ITC – Section 17(5)

(vi) Interest on late reporting of invoices

(vii) GSTR-1 late fee for belated filing of GSTR-1 Hence, the 1st Respondent issued a Show Cause Notice in Form GST DRC-01 on 14.08.2025, to which, Petitioner filed its Reply on 26.09.2025. Thereafter, 1st Respondent issued the First Reminder Notice on 08.11.2025, calling upon the Petitioner to submit a reply to the Show Cause Notice on 13.11.2025. After the receipt of same, Petitioner filed its Reply on 12.11.2025. Then the 1st Respondent issued the Second Reminder Notice on 19.11.2025 and Third Reminder Notice on 26.11.2025, calling upon the Petitioner to submit reply to

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the Show Cause Notice. Subsequently, the 1st Respondent had passed the Assessment Order dated 15.12.2025 along with Summary of the Order in Form GST DRC-07, confirming the tax and penalty proposed in the Show Cause Notice and directing the Petitioner to pay a sum of Rs.24,30,020/-. Pursuant to the Assessment Order, the 3rd Respondent has issued a Notice in Form GST DRC-13 dated 20.03.2026 to the Branch Manager of all banks, attaching the Petitioner’s Bank Accounts under Section 79 of the Tamil Nadu Goods and Services Tax Act, 2017 and recovered around 31.53% of the CGST (Tax) Demand & 48.76% of the SGST (Tax) Demand from the Petitioner.

3.1. It is further submitted by the learned counsel for the Petitioner that the Show Cause Notice, Reminder Notices and the impugned Assessment Order were uploaded in the Online GST Portal and were also communicated to the Petitioner through SMS & e-mail. Though the Petitioner had submitted a Reply to the Show Cause Notice and First Reminder Notice, the Petitioner came to know about the impugned Assessment Order only during the 1st week of September, 2026 when the 1st Respondent had informed the Petitioner about the Bank Attachment Notice dated 20.03.2026 and thus, the Petitioner was not able to file an Appeal against the impugned Assessment Order. Therefore, the learned counsel prayed that liberty may be granted to the Petitioner to challenge the impugned Assessment Order dated 15.12.2025 by filing an appeal before the concerned Appellate Authority.

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3.2. The learned counsel for the Petitioner also submitted that the Petitioner is ready and willing to pay 5% of the disputed tax over and above the 10% of disputed tax payable towards statutory pre-deposit for filing the Appeal, if liberty is granted to the Petitioner to file an appeal before the concerned Appellate Authority.

4. The learned Government Advocate (Tax) appearing for the Respondents 1 to 3 submitted that he has no objection to such liberty being granted to the Petitioner.

5. Considering the submissions made by the learned counsel on either side, this Court grants liberty to the Petitioner to file an Appeal before the concerned Appellate Authority on condition that the Petitioner shall pay 15% of the disputed tax (additional 5% of the disputed tax along with 10% of disputed tax payable towards statutory pre-deposit for filing the Appeal) to the Income Tax Department, within a period of four weeks from the date of receipt of a copy of this order. Upon filing of such appeal by the Petitioner, the concerned Appellate Authority shall consider the same without raising any issue with regard to the limitation aspect and pass appropriate orders, on merits and in accordance with law, after affording an opportunity of personal hearing to the Petitioner, as expeditiously as possible.

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6. In the result, this Writ Petition is dismissed with the above liberty. No costs. Consequently, connected Miscellaneous Petitions are closed. 16-10-2026 mrr Index: Yes/No Speaking/Non-Speaking Order Neutral Citation: Yes/No To

1. The State Tax Officer, Broadway Assessment Circle, Station: No.32, Integrated Commercial Taxes Office Complex, Elephant Gate Bridge Road, Chennai – 600 003.

2. The Assistant Commissioner (ST), Broadway Assessment Circle, Station: No.32, Integrated Commercial Taxes Office Complex, Room No.304, 3rd Floor, Elephant Gate Bridge Road, Vepery, Chennai – 600 003.

3. The Deputy Commissioner (State Tax), North – 1 Zone, Chennai, Integrated Commercial Taxes Building, No.32, Elephant Gate Bridge Road, Chennai – 600 003.

4. The Manager, Axis Bank, IFSC: UTIB0000424, George Town Branch, UTI House, 29, Rajaji Salai, Chennai, Tamil Nadu – 600 001.

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5. The Manager, Canara Bank, IFSC: CNRB0000913, New No.257, Old No.125, Angappa Naicken Street, Chennai, Tamil Nadu – 600 001.

6. The Manager, HDFC Bank, IFSC: HDFC0000166, No.3, McDowell House, 2nd Line Beach, Parrys Corner, Chennai, Tamil Nadu – 600 001.

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KRISHNAN RAMASAMY, J. mrr W.P.No.43109 of 2026 16-10-2026

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