Madras High Court
WP(MD)/31075/2026 of Tvl. SIVA ENTERPRISES Vs The Assistant Commissioner (ST) on 2 November 2026
WP(MD) No. 31075 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 02-11-2026
CORAM
THE HON'BLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
WP(MD) No. 31075 of 2026
CNR:{HCMD011534582026}
and
WMP(MD) No. 23868 of 2026
Tvl. SIVA ENTERPRISES,
Represented by its Proprietor M.Sivakumar, GSTIN: 33BAQPS0552N1Z7, 2/826, Muthuramalingapuram Colony, Narnapuram Road, Sivakasi - 626189.
..Petitioner(s)
Vs
The Assistant Commissioner (ST),
Virudhunagar - 3 Assessment Circle,
Commercial Tax Building,
NH -07 Madurai Road,
Virudhunagar - 1.
..Respondent(s)
PRAYER: Writ Petition, filed under Article 226 of the Constitution of India, praying this Court for issuance of a Writ of Certiorarified Mandamus to call for the records on the file of the respondent in GSTIN:
33BAQPS0552N1Z7/2017-18 dated 27.08.2024 for the assessment year 2017-18 passed by the respondent under Section 74 of TNGST Act 2017
and to quash the same as cryptic, barred by limitation, non-speaking, illegal, arbitrary, wholly without jurisdiction and direct the respondent to pass assessment order afresh after affording opportunity of being heard.
For Petitioner
: Mr.N.Sudalai Muthu
For Respondent
: Ms.P.Sudarkodi Nachiar
Government Advocate (Taxes)
WP(MD) No. 31075 of 2026
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ORDER
Show-cause notice dated 26.09.2023 was issued to the petitioner with regard to wrongful availment of input tax credit. In the reply filed by the petitioner, the petitioner stated that input tax credit was wrongly availed of for financial year 2017-18 and that the petitioner had remitted taxes to make good the excess availment. Thereafter, the petitioner filed a waiver application under Section 128A of applicable GST statutes. Said application was rejected on 27.06.2025. The petitioner filed an appeal before the appellate authority against the rejection of the waiver application. The appellate authority rejected the appeal. The present Writ Petition was instituted in the above facts and circumstances.
2. Accepting notice on behalf of the sole respondent, Ms.P.Sudarkodi Nachiar, learned Government Advocate (Taxes), points out that the petitioner admitted that excess input tax credit was availed of. She contends that there is no infirmity in the impugned order warranting interference.
3. On perusal of the show-cause notice and the impugned order, I find that the ingredients of Section 74, namely, fraud, wilful misstatement or suppression of facts to evade taxes, are absent therefrom. The record
WP(MD) No. 31075 of 2026 also reflects that the petitioner discharged the entire tax liability upon realising the error committed by him.
4. On instructions, learned counsel for the petitioner submits that the tax demand under the impugned order would not be challenged if the matter were to be remanded. He also submits that the question of limitation would not be raised in such remanded proceedings. He has made an endorsement to this effect.
5. Considering the fact that the ingredients of Section 74 do not appear to be satisfied, I hold that the proceedings should be conducted under Section 73 and not under Section 74. Taking note of the discharge of the entire tax demand upon admitting that excess input tax credit was claimed, the scope of remand shall be limited to the computation of interest and penalty. Towards that end, the impugned order is set aside and this matter is remanded for consideration as a proceeding under Section 73. Such proceeding shall be confined to the interest and penalty demanded under the order. After providing a reasonable opportunity to the petitioner, a fresh order shall be issued under Section 73 of applicable GST enactments within 5 months from the date of receipt of a copy of this order on the terms and conditions indicated above. After a fresh order
WP(MD) No. 31075 of 2026 is passed, it is needless to say that the petitioner would be entitled to file an application under Section 128A in terms of the rules framed thereunder.
6. This Writ Petition is disposed of on the above terms. There shall be no order as to costs. Consequently, the connected Miscellaneous Petition is closed. 02-11-2026 Index: No Speaking Neutral Citation: No JEN To The Assistant Commissioner (ST), Virudhunagar - 3 Assessment Circle, Commercial Tax Building, NH -07 Madurai Road, Virudhunagar - 1.
WP(MD) No. 31075 of 2026 SENTHILKUMAR RAMAMOORTHY, J. JEN WP(MD) No. 31075 of 2026 02-11-2026