Madras High Court
Tvl. Mahalakshmi Traders vs The State Tax Officer (Review) on 14 March, 2025
W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 14.03.2025
CORAM:
THE HONOURABLE MR.JUSTICE VIVEK KUMAR SINGH
W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
and
W.M.P.(MD)Nos.4793, 5145, 5148, 5151, 5220, 5192 and 5218 of 2025
Tvl. Mahalakshmi Traders,
1/4715/6, Mallanginar Road,
Virudhunagar,
Tamil Nadu – 626001,
Represented by Shri Gunasekara Pandian Partner. ... Petitioner in all the W.Ps.
-vs-
1.The State Tax Officer (Review),
Office of the Joint Commission (ST) Intelligence,
Virudhunagar (Intelligence),
Virudhunagar - 626 001.
2.The Joint Commissioner (ST)
Virudhunagar (Intelligence),
Virudhunagar – 626001. ... Respondents in all the W.Ps.
/PRAYER IN W.P.(MD)No.6523 of 2025:- Writ Petition filed under Article 226
of the Constitution of India, to issue a Writ of Certiorari, calling for the records
connected show cause notice DRC 01 in reference GSTIN
33AAGFM7034E1ZL/2019-20, dated 04.02.2025, issued by the first respondent
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
herein and to quash the same for having been issued without jurisdiction and
without authority of law and also contrary to the judgment of this Court.
PRAYER IN W.P.(MD)No.6866 of 2025:- Writ Petition filed under Article 226
of the Constitution of India, to issue a Writ of Certiorari, calling for the records
connected show cause notice DRC 01 in reference GSTIN
33AAGFM7034E1ZL/2018-19, dated 04.02.2025, issued by the first respondent
herein and to quash the same for having been issued without jurisdiction and
without authority of law and also contrary to the judgment of this Court.
PRAYER IN W.P.(MD)No.6867 of 2025:- Writ Petition filed under Article 226
of the Constitution of India, to issue a Writ of Certiorari, calling for the records
connected show cause notice DRC 01 in reference GSTIN
33AAGFM7034E1ZL/2020-21, dated 04.02.2025, issued by the first respondent
herein and to quash the same for having been issued without jurisdiction and
without authority of law and also contrary to the judgment of this Court.
PRAYER IN W.P.(MD)No.6868 of 2025:- Writ Petition filed under Article 226
of the Constitution of India, to issue a Writ of Certiorari, calling for the records
connected show cause notice DRC 01 in reference GSTIN
33AAGFM7034E1ZL/2021-22, dated 04.02.2025, issued by the first respondent
herein and to quash the same for having been issued without jurisdiction and
without authority of law and also contrary to the judgment of this Court.
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
PRAYER IN W.P.(MD)No.6869 of 2025:- Writ Petition filed under Article 226
of the Constitution of India, to issue a Writ of Certiorari, calling for the records
connected show cause notice DRC 01 in reference GSTIN
33AAGFM7034E1ZL/2022-23, dated 04.02.2025, issued by the first respondent
herein and to quash the same for having been issued without jurisdiction and
without authority of law and also contrary to the judgment of this Court.
PRAYER IN W.P.(MD)No.6870 of 2025:- Writ Petition filed under Article 226
of the Constitution of India, to issue a Writ of Certiorari, calling for the records
connected show cause notice DRC 01 in reference GSTIN
33AAGFM7034E1ZL/2023-24, dated 04.02.2025, issued by the first respondent
herein and to quash the same for having been issued without jurisdiction and
without authority of law and also contrary to the judgment of this Court.
PRAYER IN W.P.(MD)No.6871 of 2025:- Writ Petition filed under Article 226
of the Constitution of India, to issue a Writ of Certiorari, calling for the records
connected show cause notice DRC 01 in reference GSTIN
33AAGFM7034E1ZL/2024-25, dated 04.02.2025, issued by the first respondent
herein and to quash the same for having been issued without jurisdiction and
without authority of law and also contrary to the judgment of this Court.
For Petitioner in all the W.Ps. : Mr.N.Viswanathan
For Respondents in all the W.Ps. : Mr.J.K.Jayaselan
Government Advocate
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
COMMON ORDER
These Writ Petitions have been filed challenging the show cause notices
dated 04.02.2025, issued by the first respondent for the Assessment Years
2018-2019 to 2024-2025.
2. The petitioner submits that the provisions of Section 6 of the GST Act
were inserted solely to enable the State and Central Agencies to exercise
jurisdiction in cases involving intelligence-based enforcement, particularly, when
there is a possibility of multiple taxpayers operating under the control of both
Central and State Administrative Authorities. These provisions, however, were
not intended to carry out routine verifications of the books of a taxpayer, who
does not fall under the administrative control of the concerned tax authority. The
indiscriminate exercise of jurisdiction in such cases, would only result in chaos
and confusion, which is undesirable for the smooth functioning of tax
administration.
3. The petitioner further submits that despite bringing the above legal
position to the attention of the first respondent through their letters dated
01.07.2024, 26.12.2024 and 01.01.2025, the first respondent proceeded to issue
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
the impugned notices in Form DRC 01, dated 04.02.2025, for each of the tax
periods involved from 2018-2025 (up to June 2024) across seven tax periods.
This was done despite the fact that similar show-cause notices had already been
issued by the Central Tax Authorities for the tax periods 2019-2023 (covering
four tax years), involving identical issues. As a result, the petitioner has been
subjected to multiple authorities on the same issue, which leads to unnecessary
confusion and duplication of efforts. Therefore, the petitioner is constrained to
file these writ petitions seeking indulgence of this Court to redress their
grievances.
4. The learned Government Advocate appearing for the respondents
submits that the petitioner's challenge to the show cause notices is not
maintainable in law. The process of issuing show cause notices is an essential
step in the legal procedure and it provides the petitioner with an opportunity to be
heard and to make submissions in defense.
5. The learned Government Advocate further submits that there is no legal
bar for the petitioner to give reply to the show cause notices. The petitioner has an
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
opportunity to defend themselves, provide necessary explanations and rectify
discrepancies, if any arise. The respondent authorities have not yet taken any final
decision and it is premature for the petitioner to challenge the notices at this
stage. The principles of procedural fairness and natural justice are being followed,
ensuring that the petitioner has the opportunity to respond adequately. Therefore,
the learned Government Advocate prays that the Writ Petitions be dismissed, as
the petitioner's challenge is not warranted at this stage and the proper course of
action would be for the petitioner to respond to the show cause notices before any
adverse action is taken.
6. Heard both sides.
7. Considering the above submissions, this Court is of the considered view
that a writ court may entertain a challenge to a show cause notice if the issuing
authority lacks jurisdiction or if the notice is issued in excess of jurisdiction. In
the present cases, the challenge to the show cause notices is premature, as the
notice is merely a preliminary step in an investigation or disciplinary process and
the petitioner has the opportunity to respond and present their case.
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
8. The petitioner fails to demonstrate that the show cause notices are issued
without jurisdiction or that they violate the principles of natural justice. The
petitioner will not be prejudiced, if a reply is sent to the show cause notices,
stating their objections and raising whatever contentions they have raised in these
writ petitions. However, the petitioner has approached this Court prematurely,
before sending any reply. The petitioner's interests will be protected in case, if any
adverse order is passed against them pursuant to the impugned show cause
notices for a particular period, until the petitioner is able to challenge the same in
accordance with the law. Except for this direction, the challenge to the impugned
show cause notices, is unsustainable.
9. Accordingly, these writ petitions stand dismissed. There shall be no order
as to costs. Consequently, connected Miscellaneous Petitions are closed.
NCC : Yes / No 14.03.2025
Index : Yes / No
To:-
1.The State Tax Officer (Review),
Office of the Joint Commission (ST) Intelligence,
Virudhunagar (Intelligence),
Virudhunagar - 626 001.
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
2.The Joint Commissioner (ST)
Virudhunagar (Intelligence),
Virudhunagar – 626001.
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W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
VIVEK KUMAR SINGH, J.
smn2
Common order
W.P.(MD)Nos.6523 and 6866 to 6871 of 2025
14.03.2025
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