WP/41364/2026 of Kumaraswamy Sekar Vs Deputy Commercial tax officer on 12 October 2026

Order

This Writ Petition has been filed challenging the assessment order dated 26.12.2025 passed by the respondent, seeking to quash the same, and consequently directing the respondent to re-adjudicate the matter pursuant to the Show Cause Notice after providing an opportunity for a personal hearing and to pass a fresh speaking order in accordance with law.

2. The learned counsel appearing for the petitioner submits that the petitioner runs a proprietorship firm. The respondent initiated assessment proceedings against the petitioner alleging mismatches between Form GSTR-3B and Form GSTR-7, alongside differences in Tax Deducted at Source (TDS) following the cancellation of the petitioner's GST registration. The petitioner duly submitted detailed replies on 03.07.2025 and 25.10.2025.

3. The specific contention of the learned counsel for the petitioner is that the respondent grossly erred in confirming a final demand of Rs. 5,97,970/- in the impugned order, whereas the Show Cause Notice (Form GST DRC-01) had proposed a demand of only Rs. 74,884/-. He submits that the final demand is beyond the scope of the Show Cause Notice, and that the respondent erroneously inflated the tax liability without issuing any fresh notice or granting an opportunity to contest the increased amount. It is settled law that the demand

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confirmed in a final adjudication order cannot exceed the amount proposed in the underlying Show Cause Notice.

4. The learned counsel further submits that the respondent passed the impugned order mechanically, without considering the detailed explanations offered by the petitioner or assigning any reasons as to why the petitioner’s submissions were unacceptable. Furthermore, the respondent failed to consider the petitioner's request for reasonable time to compile and produce supporting statutory records.

5. In response, the learned Special Government Pleader (Taxes), after perusing the Show Cause Notice (Form GST DRC-01) and the impugned assessment order (Form GST DRC-07), fairly concedes that the demand confirmed in the impugned order is patently beyond the scope of the Show Cause Notice. Accordingly, she requests this Court to remand the matter back to the respondent for fresh consideration.

6. Heard both sides and perused the materials available on record.

7. Upon a careful perusal of the records, it is evident that the Form GST DRC-01 was issued proposing a liability of Rs. 74,884/-. However, the impugned assessment order in Form GST DRC-07 was passed confirming a

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demand of Rs. 5,97,970/-. Operating beyond the scope of a Show Cause Notice is a jurisdictional error and a clear violation of the principles of natural justice, as the petitioner was never put on notice regarding the enhanced liability.

8. For the reasons stated above, the impugned order dated 26.12.2025 is unsustainable and is liable to be set aside. Accordingly, this Court passes the following order:— I) The impugned order dated 26.12.2025 is set aside and the matters are remanded to the respondent for fresh consideration on condition that the petitioner shall pay 25% of disputed tax as stated in DRC-01 amount to the respondent, in each case, 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.

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(iv) Considering the fact that the impugned orders 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.

9. With the above directions, these writ petitions are disposed of. No costs.

Consequently,

WMP.No.46397/2026

is

ordered

and WMP.No.46399/2026 is closed. 12-10-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No SK To Deputy Commercial tax officer Cholavaram Assessment Circle, 1 st Floor, Room No. 109, No. 32, Elephant Gate Bridge Road, Vepery, Chennai- 600003.

WP No. 41364 of 2026

KRISHNAN RAMASAMY J. SK WP No. 41364 of 2026 AND WMP NO. 46397 OF 2026,WMP NO. 46399 OF 2026 12-10-2026