Facts of the Case

Tvl Toptech Engineering Company Private Ltd., Ariyalur, was subjected to an assessment order dated 20.02.2024 (GSTIN 33AAECT0183G1ZM) followed by a summary in Form GST DRC-07 for tax period 2019-20. The petitioner did not file an appeal within the statutory period, and even the further condonable period of one month had expired by the time it approached the appellate route. The petitioner therefore challenged the assessment order directly before the High Court, seeking that it be quashed as being without jurisdiction.

Issues Involved

  1. Whether the High Court should entertain a challenge to an assessment order where the statutory appeal period, including the condonable extension, had already expired, given that the delay was only marginal.

Petitioner's Arguments

  • The delay in preferring the appeal was only marginal, and the petitioner deserved indulgence to have the matter heard on merits rather than being shut out on a technical limitation bar.

Respondent's Arguments

  • The Government Advocate did not seriously contest the marginal nature of the delay, and the case proceeded on the footing of whether indulgence could be shown notwithstanding the expired condonable period.

Court Order / Findings

  • The Court noted that although the appeal was not preferred within the condonable period, the delay was rather marginal in the facts of the case.
  • Considering the facts and circumstances, the Court permitted the petitioner to file an appeal before the appellate authority within seven days, directing that it be entertained without reference to limitation and disposed of on merits in accordance with law.
  • The petitioner was directed to make the mandatory pre-deposit of 10% of the disputed tax amount as required under Section 107 of the TNGST Act.
  • It was clarified that once the pre-deposit is made and the appeal is entertained, the impugned assessment order would automatically stand stayed.

Important Clarification

  • Even where the condonable delay period under Section 107 has technically lapsed, High Courts retain discretion under Article 226 to permit a marginally delayed appeal to be entertained on merits, particularly where no serious prejudice to revenue results.
  • Filing the mandatory 10% pre-deposit under Section 107 automatically operates to stay recovery under the assessment order once the appeal is admitted — taxpayers need not separately apply for stay.

Sections Involved

  • Section 107, TNGST/CGST Act, 2017 – appeal to Appellate Authority, including the 10% mandatory pre-deposit requirement and condonable delay provisions.

Decision – In Favour of

The decision is in favour of the assessee, Toptech Engineering Company Private Ltd. — the writ petition was disposed of permitting a fresh appeal without reference to limitation, subject to pre-deposit.

Case Details

Madurai Bench of Madras High Court – W.P.(MD)No.29570 of 2025 with W.M.P.(MD)Nos.22875 & 22877 of 2025 – Coram: Hon'ble Mr. Justice G.R. Swaminathan – Order dated 17.10.2025.

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