Madras High Court
WP/40419/2026 of MENAGA Vs The Staet Tax officer on 12 October 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12-10-2026
CORAM
THE HON'BLE MR JUSTICE KRISHNAN RAMASAMY
WP Nos. 40419 and 40424 of 2026
and WMP Ns. 45381, 45382, 45388 and 45389 of 2026
CNR:{HCMA012202832026}
Menaga
W/O.R.Rahul
D/o.Late.T.Rajendran
D.No.8/171,Sivan Koil street
Pidagam village
Ulundurpet Taluk
kallakurichi District -607 202
..Petitioner in both W.Ps.
Vs
The State Tax officer
Villupuram II Assessment Circle
Commercial Taxes Building
Integrated Master Plan Complex,
Villupuram-605 602
..Respondent in both W.Ps.
Prayer in
: The Writ Petition is filed under Article 226
of the Constitution of India seeking the issuance of a Writ of Certiorari calling for the records relating to the Impugned order bearing No.GSTIN33AMZPR5539G2ZC / 2018-2019 dated 15.10.2025 issued by the State Tax Officer, Villupuram -II Assessment Circle, the Respondent herein,
levying GST on the seigniorage fees/royalty paid for quarrying and transporting mineral for the Tax Period from 2018-2019 and quash the same Prayer in WP No. 40424 of 2026:
The Writ Petition is filed under Article 226
of the Constitution of India seeking the issuance of a Writ of Certiorari calling for the records relating to the Impugned Order bearing No.GSTIN33AMZPR5539G2ZC / 2020-2021 dated 15.10.2025 issued by the State Tax Officer, Villupuram -II Assessment Circle, the Respondent herein, levying GST on the Seigniorage fees/royalty paid for quarrying and transporting mineral for the Tax Period from 2020-2021 and quash the same and pass For Petitioner :
in both W.Ps.
Mr. T.R.Sathiyamohan
For Respondent(s):
Ms. G. Dhanamadhri
Special Government Pleader (T)
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COMMON ORDER
The present Writ Petitions have been filed challenging the impugned orders passed by the respondent, both dated 15.10.2025.
2. The learned counsel for the petitioner submits that the core issue involved in the present cases is pertaining to the levy of GST on Seigniorage fees and is currently pending before the Hon’ble Supreme Court.
3. The learned counsel further submits that the impugned orders were passed ex parte without providing an opportunity of personal hearing to the petitioner. However, he states that the petitioner is voluntarily willing to deposit 10% of the disputed tax amount in respect of each assessment order. To that effect, the learned counsel has also made an endorsement in the Court bundles. Hence, he requests this Court to set aside the impugned orders and grant the petitioner an opportunity to present their case afresh before the respondent.
4. Ms. G. Dhanamadhri, learned Special Government Pleader (T) appearing for the respondent, accepts that the issue regarding the levy of GST on Seigniorage fees is pending before the Hon’ble Apex Court. She further submits that the matter may be remitted back to the respondent for fresh consideration, subject to the condition that the petitioner deposits 10% of the disputed tax amount.
5. Heard the learned counsel on either side and perused the materials available on record.
6. Considering the facts and circumstances of the case, and taking note of the petitioner's voluntary undertaking to pay 10% of the disputed tax amount for each assessment year, this Court is inclined to set aside the impugned orders dated 15.10.2025 on the ground of violation of the principles of natural justice, as they were passed ex parte. Accordingly, this Court passes the following orders:-
(i) The impugned orders dated 15.10.2025 are hereby set aside, and the matters are remanded to the respondent for fresh consideration, on the condition that the petitioner deposits 10% of the disputed tax amount in respect of each assessment order with the respondent within a period of thirty (30) days from the date of receipt of a copy of this order. It is clarified that the setting aside of the impugned orders shall take effect only upon the payment of the said amount.
(ii) The petitioner shall file their reply or objections along with relevant supporting documents, if any, within a period of three (3) weeks from the date of making the aforesaid payment.
(iii) Upon receipt of the petitioner's reply or objections, the respondent shall consider the same and issue a 14-day clear notice fixing a date for a personal hearing. Thereafter, the respondent shall pass appropriate orders on merits and in accordance with law, only after the legal issue is finally decided by the Hon’ble Supreme Court.
10. With the above directions, these Writ Petitions are disposed of. No costs. W.M.P.Nos.45381 and 45388 of 2026 filed to dispense with the production of the original impugned orders dated 15.10.2025, are allowed. Consequently, the connected W.M.P.Nos.45382 and 45389 of 2026 are also closed. 12-10-2026 Asi To The Staet Tax Officer, Villupuram II Assessment Circle commercial Taxes Building Integrated Master Plan Complex, Villupuram-605 602
KRISHNAN RAMASAMY J. Asi WP Nos. 40419 and 40424 of 2026 and WMP Ns. 45381, 45382, 45388 and 45389 of 2026 12-10-2026