High Court Quashes GST Orders Considering Director’s Serious Illness; Case Remanded for Fresh Review

The Madras High Court quashed GST orders against the petitioner company, considering the director’s serious illness prevented a response to show cause notices. Matter remanded to tax authorities for fresh consideration.

The Madras High Court has recently announced its decision on the writ petitions filed by Tvl.KGK Engineers Private Limited, challenging GST orders dated June 30, 2025, and June 27, 2025, in Form GST DRC – 07, for the financial years 2021-22 and 2022-23. The impugned order was passed subsequently to a show cause notice (SCN) dated September 20, 2024, in which the petitioner was asked to appear for a personal hearing. However, when tax authorities did not receive any response to the notice, they issued the impugned orders dated June 30, 2025, and June 27, 2025.

The petitioner claimed that during the assessment proceedings, its director was suffering from a serious health issue and therefore was not aware of the proceedings and hence could not respond to the SCN. To support this claim, the petitioner furnished relevant medical records. Also, because of this reason, the time limit to furnish a GST appeal before the High Court had also expired. The present Writ Petitions have been filed only on January 27, 2026.

When the High Court heard the arguments of both sides and analysed the facts of the case, it quashed the impugned orders considering the circumstances and sent the case back to the tax authorities for fresh consideration on merits. The company has been directed to submit replies and supporting documents to the original show cause notices.

The court further directed the tax authority to pass a fresh order after properly listening to the petitioner, preferably within three months from the date of receiving the company’s reply. Additionally, any bank account attachment related to the case was ordered to be automatically removed. The writ petitions were disposed of without any costs.