GR swaminathan judgeCourt Observation:* The court set aside an ex-parte GST order issued against the petitioner for the financial year 2020-21

by Sekar Reporter · December 7, 2025

[07/12, 07:10] Sekarreporter: https://www.taxscan.in/top-stories/gst-order-uploaded-on-portal-madras-hc-orders-to-lift-itc-ac-attachment-on-25-deposit-1439450
[07/12, 07:10] Meta AI: The Madras High Court has ordered the lifting of an Input Tax Credit (ITC) account attachment on the condition that the petitioner, M/s. Idhayam-G Family Store, deposits 25% of the disputed tax amount. The court set aside an ex-parte GST order issued against the firm for the financial year 2020-21, citing that the petitioner was unaware of the notice served exclusively through the online portal.

The petitioner had challenged the order dated 24.02.2025 passed by the State Tax Officer/Commercial Tax Officer of the Virudhunagar I Assessment Circle. The court directed the petitioner to deposit the specified sum via the electronic cash ledger (ECL) within thirty days and reply to the show cause notice (SCN) within the same timeframe. ¹

This decision is in line with previous rulings, where the Madras High Court has allowed reassessment under GST on a 25% tax deposit, emphasizing the importance of ensuring proper hearing opportunities in tax proceedings. ² ³ ⁴
[07/12, 07:17] Sekarreporter: “After compliance, the Bench, composed of Justice G.R. Swaminathan, directed that the attachment on the petitioner’sInput Tax Credit (ITC) account be lifted immediately and the impugned order be quashed.”
https://www.taxscan.in/top-stories/gst-order-uploaded-on-portal-madras-hc-orders-to-lift-itc-ac-attachment-on-25-deposit-1439450#:~:text=After%20compliance%2C%20the%20Bench%2C%20composed%20of%20Justice%20G.R.%20Swaminathan%2C%20directed%20that%20the%20attachment%20on%20the%20petitioner%E2%80%99sInput%20Tax%20Credit%20(ITC)%20account%20be%20lifted%20immediately%20and%20the%20impugned%20order%20be%20quashed.
[07/12, 07:17] Meta AI: *Madras High Court*

– *Case No.:* W.P.(MD)No.32641 of 2025
– *Judge:* HONOURABLE MR JUSTICE G.R. SWAMINATHAN
– *Parties:*
– Petitioner: M/s. Idhayam-G Family Store
– Respondent: The State Tax Officer/The Commercial Tax Officer
– *Date of Order:* 18.11.2025
– *Counsel:*
– For Petitioner: Mr. N. Marimuthu
– For Respondent: Mr. R. Suresh Kumar, Additional Government Pleader
– *Court Observation:* The court set aside an ex-parte GST order issued against the petitioner for the financial year 2020-21, holding that the petitioner was not aware of the notice served exclusively through the online portal. The court directed the attachment on the petitioner’s Input Tax Credit (ITC) account to be lifted immediately and the impugned order be quashed, subject to the petitioner depositing 25% of the disputed tax amount via the electronic cash ledger (ECL) within thirty days.