WP/14409/2026 of Narayana mines Vs Assistant Commissioner (ST)

1/7 WP No. 14409 of 2026 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15-04-2026 CORAM THE HONOURABLE MR JUSTICE C. SARA V ANAN WP No. 14409 of 2026 WMP Nos. 15616 & 15617 of 2026 Narayana Mines Rep. by its Partner P.Subramani, Old No.29, N.No.5, 3rd Cross Street, Ramesh Nagar, West Tambaram, Chennai - 600 045. Petitioner(s) Vs Assistant Commissioner (ST) Tambaram Assessment Circle, Integrated Registration and Commercial Taxes Buildings, Greenways Road, RA Puram, Chennai - 28. Respondent(s) PRAYER Writ Petition filed under Article 226 of the Constitution of India f or issuance of a Writ of Certiorari, calling for the records in im pugned proceeding in GSTIN/33AAGFN3501R1Z5/2021-2022 dated 27.01.2026 on the file of the respondent herein and quash the same. For Petitioner(s): Mr.B.Manoharan For Respondent(s): Ms.Amirtha Poonkodi Dinakaran Government Advocate https://www.mhc.tn.gov.in/judis 2/7 WP No. 14409 of 2026 ORDER Ms.Amirtha Poonkodi Dinakaran, learned Government Advocate takes notice for the Respondent. 2. This Writ Petition is being disposed of at the stage of admission i tself with the consent of the learned counsel for the Petitioner and the le arned Government Advocate for the Respondent. 3. In this writ petition, the petitioner challenged the Impugned Orde r dated 27.01.2026 which was preceded by a Show Cause Notice in GST DRC-01 dated 17.07.2025 wherein the petitioner was proposal to pay the tax under Reverse Charge Basis on account of the Seigniorage fee or Royalty payable to the State Government for the mining license given to the petitioner, was confirmed in absence of a reply. 4. The learned counsel for the petitioner submitted that the petitione r is willing to deposit 10% of the disputed tax proposed in the impugned Show Cause Notice as a condition for denovo adjudication and he had also made the following endorsement to that effect in the Court bundle. https://www.mhc.tn.gov.in/judis 3/7 WP No. 14409 of 2026 “Petitioner may be permitted to deposit 10% of tax claim and case may be remanded to respondent.” 5. The learned Government Advocate for the respondent has no objection for the same. 6. It is noticed that the issue is now pending before the Hon’ble Supreme Court. 7. Therefore, the case is remitted back to the Respondent to pass an order subject to the Petitioner depositing 10% of the disputed tax in cash from the Petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order. 8. Recovery of balance tax shall be however subject to orders of the Hon’ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying. In case decision of the Hon’ble Supreme Court is in favour of the Petitioner, the tax amount now directed to be pre-deposited shall be refunded back or re-credited in the Petitioner’s Electronic Cash Regist er. In case, the Hon’ble Supreme Court decides the case against the Petitioner, the Pet itioner shall pay the tax amount subject to such amount as may be ordered to be paid. https://www.mhc.tn.gov.in/judis 4/7 WP No. 14409 of 2026 9. Therefore, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 17.07.2025 by treating the impugned order date d 27.01.2026 as an addendum, together with requisite documents to substantiate the defence within period of thirty (30) days from the date of rece ipt of a copy of this order. 10. In case the Petitioner complies with the above stipulations, the Respondent shall proceed to pass a final order in line with the deci sion of the Hon’ble Supreme Court on payment of Seigniorage fee or Royalty fee for quarrying. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner, if any, shall also stand automatically vacated. 11. It is made clear that attachment of Petitioner’s bank acc ount, if any, shall be lifted subject to Petitioner depositing 10% of the disput ed tax as ordered above and subject to Petitioner is not being in arrears of any other amount barring the amount demanded under the impugned Show Cause Notice. 12. In case the Petitioner fails to comply with any of the stipul ations, the Respondent is at liberty to proceed against the Petitioner to r ecover the tax in accordance with law as if this Writ Petition was dismissed in limine today. https://www.mhc.tn.gov.in/judis 5/7 WP No. 14409 of 2026 13. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner. 14. This Writ Petition stands disposed of with the above observat ions. No costs. Connected Writ Miscellaneous Petitions are closed. 15-04-2026 (2/3) Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No ssr https://www.mhc.tn.gov.in/judis 6/7 WP No. 14409 of 2026 To Assistant Commissioner (ST) Tambaram Assessment Circle, Integrated Registration and Commercial Taxes Buildings, Greenways Road, RA Puram, Chennai - 28. https://www.mhc.tn.gov.in/judis 7/7 WP No. 14409 of 2026 C.SARA V ANAN J. ssr WP No. 14409 of 2026 15-04-2026 (2/3) https://www.mhc.tn.gov.in/judis