Madras HC Grants Conditional Relief in GST Recovery Case Involving Ex Parte Adjudication

The writ petition was filed by M/s. Era Cell Private Limited challenging an Order-in-Original dated 30.07.2025, passed by the Assistant Commissioner of GST and the consequential recovery notice dated 01.12.2025. The impugned order arose from Show Cause Notice No.42/2024 (GST-DC), under which substantial tax, interest, and penalty were confirmed under Section 74 of the CGST/TNGST Act, 2017.

The petitioner contended that its GST registration had been cancelled as early as 14.07.2023 and that the show cause notice dated 15.07.2025 was never served upon it. The adjudication proceeded ex parte, culminating in a demand of over Rs. 1.49 crore along with equal penalty and interest.

Issue Before HC: Whether the impugned Order-in-Original and recovery proceedings could be sustained when the petitioner alleged non-receipt of the show cause notice and denial of an effective opportunity of hearing.

HC Decided: The Hon’ble High Court declined to conclusively adjudicate the issue of service of notice in a summary writ proceeding. The Court took note of the fact that the petitioner’s Director had closed the business and was presently abroad, leaving the company to be represented by his mother, a senior citizen homemaker.

The Court directed the petitioner, represented through its Director and her son, to deposit Rs. 25 lakh towards the disputed tax within 30 days. It was further held that failure to comply would entitle the department to proceed with recovery as if the writ petition had been dismissed in limine. The writ petition was disposed of, with no order as to costs.

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