Authority: Madras High Court, Madurai Bench

Order Date: 13 March 2025

Case Overview

  • Petitioner: Sri Lakshmi and Brothers Media Events Private Limited, represented by Managing Director L. Adimoolam and counsel Mr. G. Baskar.
  • Respondent: Assistant Commissioner, Madurai Rural (South), Madurai West.
  • Writ petitions W.P.(MD) Nos.5712‑5714 of 2025 filed under Article 226 seeking certiorari and quash of assessment orders under Section 74 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017 for FY 2020‑21 (Reference No. ZD330624008882G dated 03.06.2024), FY 2018‑19 (Reference No. ZD330524207522T dated 23.05.2024), and FY 2017‑18 (Reference No. ZD330524206660S dated 23.06.2024).
  • The petitioner challenged the penalties, arguing they were levied beyond the scope of the show‑cause notice and that the assessment orders did not specifically allege suppression or fraud.

Observations

  • The Court observed that the penalty was imposed without proper basis as the show‑cause notice did not cover it.
  • The assessment orders under Section 74 failed to specifically allege any suppression or fraud by the petitioner.

Order

  • An interim stay on the penalty orders is granted for a period of four weeks.
  • The matter is posted for further hearing on 15 April 2025.

Final Outcome

  • The penalty orders under Section 74 of the TNGST Act are stayed for four weeks; the petitions will be heard on 15 April 2025, and the assessments may be quashed pending final determination.

Topics: Tax Assessment, Court Order