Facts of the Case

Tvl. Raguram Transport, a proprietary transport business based in Madurai, suffered an ex-parte order dated 27.08.2024 passed under Section 73 of the GST Act, 2017 against GSTIN 33AAZPH9308K2Z3 for the period 2019-20, passed by the Deputy State Tax Officer. The petitioner filed a writ petition before the Madurai Bench of the Madras High Court under Article 226, seeking to quash the order as illegal and in gross violation of principles of natural justice, and to direct fresh assessment after an opportunity of personal hearing. By the time the writ was filed, the statutory appeal period had already expired, and the petitioner's bank account with the third respondent bank had been attached in the interim. The matter was heard and disposed of by a single Judge on 28.11.2025.

Issues Involved

  1. Whether the petitioner, having suffered an ex-parte Section 73 order, should be permitted to file a belated statutory appeal despite expiry of the limitation period.
  2. Whether such relief should be made conditional on payment of a pre-deposit, and whether the bank attachment should be lifted upon compliance.

Petitioner's Arguments

  • The impugned order dated 27.08.2024 was passed ex-parte, in gross violation of principles of natural justice, without the petitioner being afforded an opportunity of personal hearing under the GST Act, 2017.
  • The order deserved to be quashed and the assessment re-done afresh after granting the petitioner a proper opportunity of hearing.

Respondent's Arguments

  • The order records that both sides were heard, with the department's position reflected in the conditional relief granted rather than in any recorded rebuttal of the natural justice grievance.

Court Order / Findings

  • The Court accepted that the petitioner had suffered an ex-parte order and that the appeal period had already expired by the time the writ was filed.
  • The Court permitted the petitioner to file an appeal within thirty days from receipt of the order, directing that it be entertained without reference to limitation, subject to payment of 10% of the disputed tax amount as pre-deposit.
  • Upon such compliance, the attachment made on the petitioner's bank account was directed to be lifted forthwith.
  • The order made clear that if the petitioner failed to remit the pre-deposit and/or file the appeal within thirty days, the benefit of the order would stand automatically recalled.

Important Clarification

  • Courts routinely permit a limitation-barred appeal against an ex-parte GST order to be entertained on merits, conditioned on payment of a pre-deposit (commonly 10% of the disputed tax), balancing the assessee's right to be heard against the revenue's interest in securing partial recovery.
  • Lifting of a bank attachment is frequently made contingent on actual compliance with the pre-deposit and timely filing of the appeal, with automatic reversal of relief on default.
  • Such conditional relief does not adjudicate the merits of the underlying tax demand, leaving that to the appellate authority.

Sections Involved

  • Section 73, GST Act, 2017 - determination of tax not paid or short paid for reasons other than fraud or suppression of facts.
  • Section 107, GST Act, 2017 - governs the appellate remedy and its limitation period, extended here by the Court on terms.

Decision - In Favour of

Disposed of with directions, in part in favour of the assessee. The ex-parte order itself was not quashed, but the petitioner was granted a conditional, time-bound right of appeal on merits with the bank attachment lifted upon compliance.

Case Details

Court: Madurai Bench of the Madras High Court
Case No.: W.P.(MD)No.34731 of 2025 (with W.M.P.(MD)No.27438 of 2025)
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Decision: 28.11.2025

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