On December 5, 2025, the High Court of Madras, led by Judge Senthilkumar Ramamoorthy, made an important decision about a tax issue involving Cosmos Purification Systems Private Limited. Here's a simplified explanation of what happened.
Cosmos Purification Systems, represented by its director Mr. Adithya Ravindranath, faced problems because of a tax notice dated August 8, 2024. The company, located in Chennai, was surprised by a tax demand they claimed they weren't aware of until their bank accounts were frozen. The notice was issued under Section 73 of the GST laws for the financial year 2019-20.
Cosmos was mainly upset because they felt they didn't get a fair chance to defend themselves. Their lawyer, Mr. R. Anish Kumar, explained that the company is small and doesn't have a full-time auditor. They only found out about the tax problem when the bank told them their account was frozen.
"The company was not given a fair chance to challenge the tax demands."
Judge Senthilkumar Ramamoorthy noticed that the company wasn't given a chance to speak before the tax demand was finalized. The court recognized that Cosmos filed their complaint late but decided to give them another chance. They were instructed to pay 50% of the main tax amount within four weeks.
After Cosmos pays the required amount, the previous order will be canceled. The court has asked for a new review of the case, making sure Cosmos gets a fair hearing this time. The State Tax Officer from the Sholinganallur Assessment Circle will need to make a new decision within three months.
The court’s decision means Cosmos has another chance to have their taxes assessed fairly. They need to act quickly to meet the court’s conditions, but this gives them an opportunity to sort out their tax issues properly.
The case shows how important it is for everyone to have a fair chance to explain their side, and how the court helps ensure fair treatment even when deadlines are missed.
