Order Date - 17 July 2025 

Parties:  M/s. LRS and Co. Vs The State Tax Officer, Woraiyur Assessment Circle

Facts -

• The Petitioner, M/s LRS and Co., a government contractor, challenged an order issued in Form GST DRC-01D dated 18.12.2024 under Rule 88C of the TNGST Rules for delay in payment of admitted tax liability for FY 2023–24.
• Although the demand was raised, the petitioner had already paid the tax with interest, and claimed that 75% of the amount was paid even before the order and reflected in GSTR-3B.

Issue -

• Whether the demand order under Rule 88C can survive when the admitted tax liability along with interest has been paid?

Orders -

• The Single Bench of the Hon’ble High Court observed that the respondent confirms that post facto the petitioner had paid the admitted tax liability together with interest has been recovered.
• Recording the above submission, the impugned order was quashed with a direction to the respondent to pass suitable orders regarding the appropriation of amounts already paid towards the admitted tax liability and the interest and refund allowed excess paid if any towards further tax liability of the petitioner within a period of 4 weeks from the date of receipt of a copy of this order.