Madras High Court
WP/40741/2026 of SAI CASHEW PROCESSORS Vs THE DEPUTY STATE TAX OFFICER-1 on 13 October 2026
WP No. 40741 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 13-10-2026
CORAM
THE HON'BLE MR JUSTICE KRISHNAN RAMASAMY
WP No. 40741 of 2026
CNR:{HCMA012227842026}
AND
WMP NO. 45699 OF 2026,WMP NO. 45702 OF 2026
Sai Cashew Processors
Rep by its Proprietor M.Karthick Gupta,
S/o.Muthukumar,
No. 5, NA, Oraiyur Road, Mettamedu,
Thorapadi Pudupet, Cuddalore District,
Tamil Nadu – 607 108.
..Petitioner(s)
Vs
The Deputy State Tax Officer-1,
Panruti (Town) Assessment Circle,
Office of the State Tax officer, Commercial Taxes Building, Kumbakonam Road, Near Taluk Office, Panruti -607 106, Cuddalore District.
..Respondent(s)
PRAYER:- Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorarified Mandamus, calling for the records of the respondent herein in impugned order in FORM GST DRC -07
bearing Reference No. ZD330824166320L dated 20.08.2024 for the Financial Year 2019- 2020, and quash the same in so far as it levies interest of Rs.1,92,130 /- under Section 50 (1) and penalty of Rs.40,000/- under Section 73 of and 122 (1) (XVi) of the Tamilnadu Goods and Service Tax Act, 2017
read with Central Goods and Service Tax Act, 2017, as illegal, arbitrary, without jurisdiction and contrary to the binding pronouncements of this Court,
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WP No. 40741 of 2026
and Consequently direct the respondent to delete the said interest and penalty from the Electronic Liability Register of the Petitioner and to refrain from taking any step for their recovery under Section 79 of the said Act.
For Petitioner(s):
Mr.T.Suresh
For Respondent(s):
Mr.R.Sethu Prabakaran
Government Advocate (T)
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Order
This writ petition has been filed by the petitioner challenging the impugned assessment order dated 20.08.2024, passed by the respondent in respect of the Financial Year 2019-20.
2. Mr.R.Sethu Prabakaran, learned Government Advocate accepts notice on behalf of the respondent.
3. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.
4. Though larger relief has been sought for in the present writ petition, when the matter is taken up for hearing today, the learned counsel for the petitioner would submit that the petitioner is willing to file an appeal against the said impugned assessment order. Therefore, he seeks indulgence of this Court to file such appeal, as the same would suffice to redress the petitioner's grievance.
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WP No. 40741 of 2026
5. Learned Government Advocate appearing for the respondent would submit that subject to the leave of this Court, this writ petition may be disposed of and the orders whichever passed by this Court will be complied with.
6. Heard the learned counsel for the petitioner as well as the learned Government Advocate appearing for the respondent and perused the materials available on record.
7. Though the petitioner has sought for a larger relief in the present writ petition, learned counsel for the petitioner would submit that the petitioner is now willing to file an appeal against the impugned assessment order dated 20.08.2024. The petitioner, therefore, seeks indulgence of this Court to file such appeal, as the same would suffice to redress the petitioner's grievance. Further, the petitioner has expressed willingness to pay an additional 10% of the disputed tax amount over and above the statutory pre-deposit.
8. Considering the submissions made by the learned counsel for the petitioner, this Court is inclined to dismiss the present writ petition granting liberty to the petitioner to challenge the impugned assessment order before the Appellate Authority.
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WP No. 40741 of 2026
9. Accordingly the present writ petition stands dismissed with liberty to file appeal subject to the conditions stipulated below.
(i) The petitioner is granted liberty to file an appeal before the concerned Appellate Authority within a period of two (2) weeks from the date of receipt of a copy of this order, subject to the payment of 20% of the disputed tax amount, comprising the statutory pre-deposit of 10% and an additional 10% of the disputed tax amount, as agreed to by the petitioner.
(ii) Upon such filing and verification of the requisite payment, the Appellate Authority shall entertain the appeal without insisting upon the limitation aspect and consider the appeal on merits and in accordance with law, after affording the petitioner an opportunity of personal hearing.
10. The connected writ miscellaneous petition in W.M.P.No.45699 of 2026, filed seeking to dispense with the production of original impugned order is hereby ordered as prayed for and W.M.P.No.45702 of 2026 filed seeking interim stay is hereby closed. No costs. 13-10-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No rst
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WP No. 40741 of 2026
To The Deputy State Tax Officer-1 Panruti (Town) Assessment Circle, Office of the State Tax Officer, Commercial Taxes Building, Kumbakonam Road, Near Taluk Office, Panruti -607 106, Cuddalore District.
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WP No. 40741 of 2026
KRISHNAN RAMASAMY J. rst WP No. 40741 of 2026 AND WMP NO. 45699 OF 2026, WMP NO. 45702 OF 2026 13-10-2026
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