WP/40857/2026 of Z Abdullah Manpower Consultants Vs The State Tax Officer on 12 October 2026

Order

The present Writ Petition has been filed challenging the assessment order in

WP No. 40857 of 2026

Form GST DRC-07 dated 02.12.2025.

2. The learned counsel for the petitioner submits that the respondent initiated proceedings under Section 74 of the CGST Act, alleging certain discrepancies. He contends that the proposal was issued without conducting any reconciliation of the petitioner’s books of accounts, purchase registers, and statutory records. Thereafter, though the respondent issued DRC-01 notice, no opportunity of personal hearing was provided. Such a procedure effectively deprived the petitioner of a reasonable opportunity to prepare its statement and produce supporting records.

3. It is further submitted that the petitioner was completely denied an effective opportunity to place its explanation and supporting documents before the respondent. Consequently, the proceedings were concluded without proper consideration of the petitioner’s books of accounts, tax invoices, statutory returns, and other particulars. The learned counsel further contends that the mandatory requirement of an effective personal hearing under Section 75(4) of the CGST Act has been bypassed, resulting in a gross violation of the principles of natural justice. He adds that the petitioner is, however, willing to deposit 25% of the disputed tax amount.

WP No. 40857 of 2026

4. Further, he would submit that the respondent has already deducted a sum of Rs.7,141/- from the ECL of the petitioner and now, the petitioner is willing to pay 25% of the disputed tax amount after deducting the amount already recovered by the respondent. Hence, he 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 Additional Government Pleader (Taxes) appearing for the respondent would fairly admit 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 for the petitioner and the learned Additional Government Pleader appearing for the respondents and also perused the materials available on record.

7. In the case on hand, initially the show cause notice was issued on 21.08.2025. However, without providing the opportunity of personal hearing, the impugned order was passed by the respondent on 02.12.2025.

WP No. 40857 of 2026

8. Further, it was contended by the petitioner that no opportunity of personal hearing was provided to them prior to the passing of impugned order. Normally, if the respondent intends to pass any adverse order against the Assessee, under Section 75(4) of the GST Act, 2017, it is mandatory for them to provide an opportunity of personal hearing prior to the passing of assessment order. However, in this case, no such opportunity of personal hearing was provided to the petitioner and thus, it is clear that the impugned order came to be passed not only in contrary to the provisions of Section 75(4) of the GST Act but also in violation of principles of natural justice and hence, the said order is liable to be set aside.

9. Further, it was submitted by the learned counsel for the petitioner that the respondent has already deducted a sum of Rs.7,141/- from the ECL of the petitioner and now, the petitioner is willing to pay 25% of the disputed tax amount after deducting the amount already recovered by the respondent. In such view of the matter, this Court is inclined to set aside the impugned order dated 02.12.2025 passed by the respondent. Accordingly, this Court passes the following order:-

(i) The impugned order dated 02.12.2025 is set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner shall pay 25% of the disputed

WP No. 40857 of 2026

tax amount, after deducting the amount already recovered by 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.

11. With the above directions, this writ petition is disposed of. No costs. Consequently, WMP.NO.45834/2026 is ordered and WMP.No.45835/2026 is closed. 13-10-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No SK To The State Tax Officer, Thiruvallikeni Assessment Circle, 3rd Floor, Room No.333,The Integrated Building for Commercial Taxesand Registration Department, South TowerNandanam, Chennai 600 035

WP No. 40857 of 2026

KRISHNAN RAMASAMY J. SK WP No. 40857 of 2026 AND WMP NO. 45834 OF 2026,WMP NO. 45835 OF 2026 13-10-2026