Facts of the Case

V. Azhagarima challenged a demand notice dated 17.10.2025 issued by the Assistant Commissioner of GST & Central Excise, Thanjavur Division, which was only a consequential order flowing from an earlier primary order dated 30.12.2022 that the petitioner claimed no knowledge of. Rather than examine the correctness of that claim, the Madurai Bench of the Madras High Court, per Justice G.R. Swaminathan, disposed of the writ petition on 24 November 2025 by permitting the petitioner to challenge the primary order in appeal instead, on terms addressing both limitation and the consequent bank attachment.

Issues Involved

  1. Whether a writ petition filed against a merely consequential demand notice should be entertained on merits, or whether the petitioner should instead be directed to appeal the underlying primary order.
  2. On what terms — as to limitation and pre-deposit — such an appeal should be permitted where the petitioner claims no knowledge of the primary order.
  3. Whether the bank attachment made pursuant to the consequential order should be lifted pending the appeal.

Petitioner's Arguments

  • The demand notice dated 17.10.2025 impugned in the writ petition was only a consequential order, and the real grievance lay against the primary order dated 30.12.2022, of which the petitioner claimed to have had no knowledge.
  • Sought quashing of the impugned consequential demand and, in effect, an opportunity to challenge the primary order without being defeated by limitation, along with release of the attachment placed on the petitioner's bank account.

Respondent's Arguments

  • No independent contest is recorded from the Assistant Commissioner of GST & Central Excise or the bank in the order; the disposal proceeds on terms fashioned by the Court without a recorded rebuttal.

Court Order / Findings

  • The Court declined to examine the petitioner's claim of lack of knowledge of the primary order dated 30.12.2022, treating the writ petition itself as being directed only against a consequential order.
  • Considering the special facts, a taxpayer challenging only a consequential GST demand — while claiming no knowledge of the primary order — may be permitted to file a statutory appeal against the primary order without a limitation objection, conditioned on payment of the mandatory pre-deposit.
  • The petitioner was permitted to file an appeal against the primary order within four weeks, to be numbered without reference to limitation, upon payment of a 7.5% pre-deposit.
  • Upon such payment and filing of the appeal, the attachment on the petitioner's bank account was directed to stand lifted forthwith; the writ petition was disposed of accordingly, without costs.

Important Clarification

  • Where a taxpayer's real grievance is against a primary GST order but the trigger for approaching the court is a later consequential demand, a High Court can protect the right of appeal against the primary order by directing it be entertained without a limitation objection, rather than dismissing the petition on technical grounds.
  • Such relief is commonly conditioned on payment of the statutory pre-deposit (here 7.5%), with the practical benefit of lifting any bank attachment made pursuant to the consequential order once the appeal is filed and the pre-deposit is paid.

Sections Involved

  • Section 107, CGST Act, 2017 — statutory appeal against the primary order, permitted here without a limitation objection.
  • Recovery/attachment provisions, CGST Act, 2017 — basis of the consequential demand and bank attachment challenged in the writ petition.

Decision – In Favour of

Disposed of with directions, in favour of the petitioner to the extent of preserving the appellate remedy against the primary order and lifting the bank attachment, subject to a 7.5% pre-deposit.

Case Details

Court: Madurai Bench of the Madras High Court. Case No.: W.P.(MD) No. 33625 of 2025 (with W.M.P.(MD) Nos. 26539 and 26540 of 2025). Coram: Hon'ble Mr. Justice G.R. Swaminathan. Date of Order: 24 November 2025.

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