WP/41156/2026 of TVL.SHARP CONSTRUCTION Vs THE DEPUTY STATE TAX OFFICER - I on 14 October 2026

Order

This writ petition has been filed challenging the impugned order dated 26.06.2024 passed by the respondent.

2. Mr.R.Sethu Prabakaran, learned Government Advocate (Taxes), takes notice on behalf of the respondents. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.

3. The learned counsel for the petitioner would submit the petitioner is engaged in civil and industrial construction. The respondent had initiated proceedings under Section 74 of the CGST/TNGST Act alleging of a mismatch between the petitioner’s ITC claimed in GSTR-3B and the ITC auto populated in GSTR-2B. Subsequently, on 22.08.2023, GST DRC-01A was issued without recording any finding of fraud and the petitioner was granted a grossly inadequate period of only 7 days to respond to the said notice. Thereafter, on 31.10.2023, the respondent issued a show cause notice, reiterating the very same proposal. Under these circumstances, the impugned order came to be passed by the respondent without providing any opportunity of personal hearing to the petitioner. Recourse to Section 74 is impermissible in the absence of specific allegations. Therefore, this petition has been filed.

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4. Further, she would submit that the petitioner is undertakes to pay 25% of the disputed tax amount to the respondent and also made an endorsement to that effect in the case bundle. Hence, she requests this Court to grant an opportunity to the petitioner to present their case before the respondent by setting aside the impugned order.

5. On the other hand, the learned Government Advocate (Taxes) appearing for the respondent would submit that the respondent had uploaded the notices in the GST Online Portal. But the petitioner failed to avail the said opportunity. Further, he has fairly admitted that no opportunity of personal hearing was provided to the petitioner prior to the passing of impugned order. Therefore, he requested this Court to remit the matter back to the respondent, subject to the payment of 25% of the disputed tax amount by the petitioner.

6. Heard the learned counsel on either side and perused the materials available on record.

7. On a perusal of the facts and circumstances of the case, this Court finds that no opportunity of personal hearing was granted to the petitioner to present his case and further, it was submitted by the learned counsel for the petitioner that the petitioner is willing to pay 25% of the disputed tax amount to the

WP No. 41156 of 2026

respondent. In such view of the matter, this Court is inclined to set aside the impugned order dated 26.06.2024 passed by the respondent. Accordingly, this Court passes the following order:-

(i) The impugned order dated 26.06.2024 is set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner shall pay 25% of disputed tax amount to the respondent within a period of four weeks from the date of receipt of a copy of this order. The setting aside of the impugned order will take effect from the date of payment of the said amount.

(ii) The petitioner shall file their reply/objection along with the required documents, if any, within a period of three weeks from the date of payment of amount as stated above.

(iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days clear notice, by fixing the date of personal hearing, to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible.

iv) Considering the fact that the impugned order itself have been set aside, this Court is of the opinion that the attachment made on the bank account of the petitioner cannot survive any longer and hence, it is to be lifted. As a sequel, the concerned Bank is directed to de-freeze the bank account of the petitioner, immediately upon the production of a copy of this order.

WP No. 41156 of 2026

8. With the above directions, this writ petition is disposed of. No costs. Consequently, WMP.No.46190/2026 is ordered and WMP.No.46192/2026 is closed. 14-10-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No SK To The Deputy State Tax Officer - I HOSUR (SOUTH)- I, Office of the Deputy State Tax Officer, Commercial Taxes Department, Hosur, Krishnagiri, Tamil Nadu-635 109.

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KRISHNAN RAMASAMY J. SK WP No. 41156 of 2026 AND WMP NO. 46190 OF 2026,WMP NO. 46192 OF 2026 14-10-2026