In a major development impacting hundreds of small and medium enterprises (SMEs) across Tamil Nadu, the Madras High Court has admitted a large batch of writ petitions—including one filed by SKT Swamy Auto Agency, Salem—challenging the constitutional validity of GST-related notifications and assessment orders issued by tax authorities.
The bench of Justice Krishnan Ramasamy has observed that Notification 56/2023 extending time limit to pass order is illegal.
The batch includes W.P. No. 4562 of 2025, filed by SKT Swamy Auto Agency through its proprietor Ms. Thangavel Selvarani, and numerous other similar petitions from across the state, reflecting growing resistance among businesses over retrospective tax demands and procedural lapses in the GST regime.
The petitioners have sought quashing of Assessment Orders and DRC-07 forms issued by State and Central GST officers for the year 2019-20, claiming violations of principles of natural justice. Striking down Notification No. 56/2023-Central Tax (dated 28.12.2023) and corresponding state government orders like G.O.Ms.No.1/2024 (dated 02.01.2024), on grounds that they are ultra vires Section 168A of the GST Act and violate constitutional guarantees under Articles 14, 19(1)(g), and 21. Stay on Recovery Proceedings, arguing that taxpayers were denied adequate opportunity to respond and that the retrospective application of certain provisions lacked legal backing.
The main legal plank is that Section 168A of the GST Act does not authorize the government to extend time limits or issue retrospective assessments without legislative backing. The petitioners also argue that blanket application of such circulars undermines Article 14 (equality before law) and Article 19(1)(g) (freedom to practice any trade or business).
If the Court rules in favor of the petitioners, it could set a significant precedent for curbing overreach by tax authorities. Trigger a reconsideration of thousands of retrospective assessments. Provide relief to businesses struggling with procedural complexity and harsh penal consequences under GST.
Government’s Position:
The Union of India, Central Board of Indirect Taxes and Customs (CBIC), GST Council, and Tamil Nadu Commercial Taxes Department have been named as respondents. Their detailed counter-affidavits are awaited, and the case is expected to be heard in phases.
Case Details
Case Title: M/S.SKT Swamy Auto Agency Versus The Union of India
Case No.: W.P.Nos.4562, 4565, 4673, 4765, 4833, 4835, 5018, 5100, 5164, 5550
Date: 28.07.2025
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