In two cases, the Madras High Court set aside orders passed without the taxpayers’ replies and allowed fresh replies, on condition of depositing 25% of the disputed tax.

The Madras High Court has set aside two GST demand orders passed without replies from the taxpayers and remitted them for fresh adjudication, subject to a deposit of 25% of the disputed tax. [Ssci Impex v. Assistant Commissioner (ST) (FAC), Tamil Nadu & Ors., 2026-juristway.com-3129-HC(Madras)-GST; PC World Solution and PC World Pavilion v. State Tax Officer, Madurai, 2026-juristway.com-3130-HC(Madras)-GST]

Ssci Impex. Justice N. Senthilkumar heard a challenge to the order in Form GST DRC‑07 dated 21 Jul 2023 and a rectification order dated 18 Jan 2024, concerning compensation cess of ₹5,63,12,806 for 2017-18 on supplies of cigarettes. The petitioner said it was unaware of the DRC‑01A and DRC‑01 notices uploaded on the portal and was never heard.

The Additional Government Pleader argued that uploading on the portal is deemed service under Section 169(1)(d) of the CGST Act, and that the rectification order showed the petitioner knew of the demand. He added that such matters are normally remanded on a 25% deposit. The Court held that the petitioner’s entitlement to the cess amount had to be decided in an appeal, and set aside both orders. The petitioner must reply to the show cause notice (SCN) dated 23 May 2023 and pay 25% of the balance tax within eight weeks.

PC World Solution. Justice C. Saravanan set aside an order dated 29 Dec 2025 that confirmed the demand in an SCN dated 20 Jun 2025 in the absence of a reply. Following the Court’s consistent view, the matter was remitted on deposit of 25% of each disputed tax liability in cash from the electronic cash ledger within 30 days, with any amount already paid or recovered to be adjusted.

The petitioner must file its reply within the same period, treating the impugned order as an addendum to the SCN. On compliance, the bank attachment stands vacated, provided the petitioner has no other arrears. On default, the Department may recover the tax as if the petition had been dismissed in limine.

Both petitions were disposed of without costs.

2026-juristway.com-3129-HC(Madras)-GST | 2026-juristway.com-3130-HC(Madras)-GST