Case Reference:
Nanguneri Radhapuram Taluks Agricultural Co-operative Marketing Society Ltd. v. Assistant Commissioner of Central GST and Central Excise,
Madurai Bench of Madras High Court — W.P.(MD) No. 21634 of 2025, Order dated 07.08.2025
Category: Assessment / Appeal / Natural Justice
Relevant Sections: Sections 50, 74(9), and 122 of the CGST/TNGST Act, 2017
Facts (Paras 1–3)
The petitioner, a registered co-operative society engaged in trading ration supplies under PDS and non-PDS schemes, challenged the Order-in-Original No. 66/AC/GST/2024 dated 17.12.2024 issued by the Assistant Commissioner, Tirunelveli. The order confirmed a GST demand of ₹1,86,80,002 (CGST ₹93,40,001 and SGST ₹93,40,001) for FY 2017-18 to January 2024 under Section 74(9), along with interest under Section 50 and a penalty equal to the tax amount under Section 122.
Although the petitioner initially contended that the order was passed without affording proper opportunity, paragraph 3.2 of the impugned order revealed that a personal hearing was indeed granted, and the petitioner had submitted written arguments. The petitioner explained that due to lack of tax awareness, certain supplies routed through the Tamil Nadu Civil Supplies Corporation were not invoiced with GST, leading to discrepancies and unclaimed ITC for the initial years.
Questions for Determination
Whether the impugned assessment order was liable to be quashed for alleged violation of natural justice, and whether the petitioner could be granted liberty to file a statutory appeal after having paid the disputed tax amount.
Court’s Observations (Para 3–4)
Justice C. Saravanan observed that the record demonstrated compliance with natural justice, as the petitioner had appeared and made submissions during the personal hearing. However, recognizing that the petitioner had subsequently remitted the entire disputed tax—amounting to ₹1,13,96,137 paid between January and March 2025—the Court deemed it appropriate to grant liberty to file a statutory appeal within 30 days.
The Court clarified that since the disputed tax had already been paid, the petitioner would not be required to make any further pre-deposit under Section 107(6) of the CGST Act at the time of filing the appeal.
Judgement (Para 5)
The writ petition was disposed of with liberty to the petitioner to file an appeal before the appellate authority within 30 days from receipt of the order. The authority was directed to consider such appeal on merits. No costs were awarded.
Summary of Cases Referred
| Sl. No. | Case Name | Citation / Court | Verdict |
|---|---|---|---|
| 1 | Nanguneri Radhapuram Taluks Agricultural Co-operative Marketing Society Ltd. v. AC, CGST & CE | Madurai Bench of Madras HC, W.P.(MD) No. 21634/2025 | Assessment order not quashed but liberty granted to file appeal without pre-deposit as entire tax already paid. |
Between Fine Lines
This decision reaffirms that where the assessee has already discharged the entire disputed tax liability, courts may allow the matter to be pursued through the statutory appellate mechanism without insisting on additional pre-deposit. It emphasizes that the existence of a personal hearing negates allegations of breach of natural justice and that writ jurisdiction will not substitute for an appellate remedy.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
