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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →The Madras High Court set aside a GST order against Tvl A D Creation after noting that the personal hearing had taken place before, rather than after, the taxpayer’s written replies. The Court sent the matter back for reconsideration on conditions, including an additional payment and accounting for earlier CGST and SGST remittances against the IGST demand. It did not decide whether the tax was ultimately payable.
What was the dispute?
Tvl A D Creation challenged a State Tax Officer’s order dated 24 March 2026. The taxpayer’s principal complaint was that it had not received a personal hearing after submitting replies dated 27 February and 24 March 2026. The State said a hearing had been offered in response to an earlier High Court order of 8 December 2025, but also argued that documents relevant to proving movement of goods had not been submitted. It noted that this was the second round of litigation.
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The dispute also involved different tax heads for the same transactions. An earlier order dated 26 July 2024 had demanded CGST and SGST on the footing that the supplies were intra-State; the challenged order raised IGST. The taxpayer said amounts paid under CGST and SGST pursuant to the earlier court order had not been credited in the later demand.
Why did the Court set the order aside?
The Court observed that the personal hearing had been offered before the taxpayer’s replies, but not afterwards. As the reproduced order puts it: “On perusal of the impugned order, it is noticeable that a personal hearing was offered prior to the petitioner’s reply, but not thereafter.”
The Court also took account of the different tax treatment in the earlier and challenged orders, the apparent failure to provide documents sought in a notice dated 22 January 2026, and the history of repeated litigation. It set aside the challenged order and remanded the matter for reconsideration subject to conditions. This was a procedural decision: it did not finally determine whether the supplies were intra-State or inter-State, or whether tax was due.
What did the remand require?
- Account for earlier payments: Amounts previously remitted under CGST and SGST pursuant to the High Court’s order of 8 December 2025 are to be appropriated toward the IGST demand. The taxpayer must provide appropriate authorization, including a refund request if procedurally necessary.
- Pay an additional 25%: The taxpayer must remit an additional 25% of the tax demand in the challenged order within 30 days from receipt of a copy of the High Court’s order.
- Reconsider and issue a fresh order: After the taxpayer complies with the conditions and receives a reasonable opportunity, the authority must issue a fresh order within five months from the date of compliance. The order states: “After providing a reasonable opportunity to the petitioner, a fresh order shall be issued within five months from the date of compliance with the above conditions.”
What the ruling means for taxpayers
The decision addresses the sequence of events in this particular proceeding: an offered hearing before written replies did not answer the complaint that no hearing was provided after those replies. It should not be read as a blanket rule that every GST order issued without a further hearing after a reply is automatically invalid. The Court’s direction was tied to the record and resulted in a remand on specified terms.
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Nor did setting aside the order erase the taxpayer’s obligation to support its position with evidence. The State had said documents about movement of goods were missing, and the Court noted that issue while remanding the matter. The fresh decision could therefore still address the evidence and the proper tax treatment.
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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →The available reproduced order is published by TaxGuru; a separate report by The TaxCorp corroborates the central issue and disposition. The reproduced material does not establish an official court-hosted copy, case number, or exact date of the High Court order, so those identifiers should not be inferred from the reports.
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