Case Details: Tvl. Sri Balaji Tractors vs. Commercial Tax Officer (ST), Tamil Nadu (2026) 38 Centax 34 (Mad.)
Judiciary and Counsel Details
- C.Saravanan, J.
- Shri K. Narayanan, for the Petitioner.
- Shri C. Harsharaj, Special Government Pleader, for the Respondent.
Facts of the Case
The assessee, being the petitioner, challenged an order confirming interest liability on belated payment of tax and the rejection of an application seeking rectification of the assessment order for re-credit of excess input tax credit that had been reversed by the assessee. The rectification application was rejected on the ground that no documents were furnished to substantiate the claim, against which the assessee filed a statutory appeal that was acknowledged but not decided, leading to the initiation of recovery proceedings, including the attachment of the assessee’s bank account. The assessee thereupon filed the writ petition seeking quashing of the interest demand and related recovery action, contending that the appeal remained undecided despite being duly filed and that the rectification claim was wrongly rejected. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the assessee had approached the writ court only after initiation of recovery proceedings and, therefore, the writ petition was not maintainable insofar as it sought to challenge the order confirming interest on belated payment. The Court examined Section 161 of CGST and the Tamil Nadu GST Act and noted that the assessee had already availed the statutory appellate remedy, which was pending adjudication. Considering the pendency of the appeal and the attachment of the bank account, the Court directed that upon deposit of 20 per cent of the disputed amount in cash within the prescribed period, the appellate authority shall decide the appeal on merits. The Court further directed that upon such deposit, the attachment of the assessee’s bank account shall stand lifted.
