Summary: On December 5, 2025, the Madras High Court, led by Judge Senthilkumar Ramamoorthy, decided to give M/S Cosmos Purification Systems another chance to argue their case about a disputed tax demand.
M/S Cosmos Purification Systems Private Limited, represented by its director Mr. Adithya Ravindranath, faced a tax demand from the Assistant Commissioner (ST) in Chennai. The company argued that they weren't given a fair chance to contest this demand. The issue started with an order dated August 6, 2024, concerning the financial year 2019-20.
The company's lawyer, Mr. R. Anish Kumar, pointed out that Cosmos Purification is a small business without a dedicated auditor. They only found out about the tax order when their bank account was frozen. This meant they couldn't even argue their case before the decision was made.
"M/S Cosmos Purification Systems Private Limited was not provided a reasonable opportunity to contest the tax demands."
Judge Senthilkumar Ramamoorthy noted that the request was filed after the deadline. However, considering the circumstances, he decided that M/S Cosmos Purification Systems should pay 50% of the main tax demand within four weeks. This payment would allow the court to reconsider the case.
The court canceled the previous order and asked for a fresh review. The Assistant Commissioner must give M/S Cosmos Purification Systems a chance to present their case. A new decision should be made within three months, and the bank freeze will be lifted once the payment condition is met.
The court decided that Cosmos Purification should be given another chance to present their case. They need to pay half of the tax demand first, and then the previous decision will be reviewed.
"Subject to compliance with the said condition, the impugned order is set aside and the matter is remanded for reconsideration."
