Authority: High Court of Judicature at Madras

Order Date: 06-07-2026

Case Overview

  • Parties: Appellant – Balu Kumaran Proprietor, Danyasri Import and Export, Chennai; Respondent – The Deputy Commercial Tax Officer II, Assessment Circle II, Chennai North.
  • The appellant challenged the order dated 22.01.2026 (issued in WP No.2582 of 2025) which imposed a condition to deposit 50% of the disputed tax before filing a reply to the show‑cause notice dated 29.03.2023.
  • The assessment order under dispute was passed on 10.07.2023, following a show‑cause notice issued on 29.03.2023. The appellant’s GST registration had been cancelled on 21.07.2020.
  • The learned Single Judge had earlier remanded the matter to the respondent, directing the appellant to file a reply with requisite documents within thirty days, subject to depositing 50% of the disputed tax, and to pass a final order on merits within three months of receipt of the reply.
  • The appellant’s counsel argued that the 50% pre‑deposit violated natural justice and that replying via the GST portal after cancellation of registration was impracticable. He also cited Supreme Court judgments limiting pre‑condition deposits to 10% for statutory appeals.
  • The Court noted that the Supreme Court precedents dealt with cases where the assessee participated in adjudication proceedings and preferred a statutory appeal, which was not the case here. The appellant had not responded to the show‑cause notice and had not exhausted the statutory appellate remedy before filing the writ petition.
  • The Court held that the condition of depositing 50% of the disputed tax did not contravene the statute or Supreme Court dicta, given the circumstances.

Final Outcome

  • The writ appeal is dismissed.
  • The appellant is granted thirty days from receipt of this order to deposit 50% of the disputed tax and to file the required reply and documents as directed by the Single Judge.
  • No costs are awarded.
  • All connected miscellaneous petitions are closed.

Topics: Court Decision, GST Assessment, Pre‑Deposit Condition