Facts of the Case

Tvl.Toptech Engineering Company Private Ltd. (GSTIN 33AAECT0183G1ZM) suffered an assessment order dated 20.02.2024 in Form GST DRC-07 for tax period 2022-23. The statutory appeal period, including the condonable extension, had already expired by the time the petitioner sought to file an appeal, but the delay involved was only marginal. The petitioner approached the Madurai Bench of the Madras High Court seeking a direction that the appeal be entertained despite the expiry of the condonable limitation period.

Issues Involved

  1. Whether a marginal delay in filing a GST appeal, beyond even the condonable period under Section 107, warrants the High Court's indulgence in directing the appellate authority to entertain the appeal.
  2. Whether the requirement of a 10% pre-deposit of the disputed tax amount under Section 107 of the TNGST Act continues to apply even where such indulgence is granted.

Petitioner's Arguments

  • The delay in filing the appeal, though beyond the condonable period, was rather marginal and did not reflect any wilful default warranting denial of the statutory right of appeal.
  • The petitioner undertook to file the appeal within seven days of the order and sought a direction that it be entertained without reference to limitation.

Respondent's Arguments

  • The Government Advocate's position is reflected in the Court's approach of expressly conditioning any indulgence on the statutory 10% pre-deposit continuing to apply, rather than being waived altogether.

Court Order / Findings

  • The Court held that considering the facts and circumstances, indulgence could be shown to the petitioner given the marginal nature of the delay.
  • The petitioner was permitted to file the appeal within seven days, to be entertained without reference to limitation and disposed of on merits and in accordance with law, but the Court clarified that the petitioner must necessarily make the pre-deposit of 10% of the disputed tax amount as required under Section 107 of the TNGST Act.
  • The Court noted that once the pre-deposit is made and the appeal is filed and entertained, the impugned assessment order would automatically stand stayed by operation of Section 107.

Important Clarification

  • Condonation of a marginal delay in filing a GST appeal beyond even the statutorily condonable period does not exempt the assessee from the mandatory 10% pre-deposit under Section 107 of the TNGST Act; the two requirements operate independently.
  • Once the 10% pre-deposit is made and a delayed appeal is entertained pursuant to a High Court direction, the impugned assessment order automatically stands stayed under the statutory scheme, without any separate stay application being necessary.

Sections Involved

  • Section 107, TNGST/CGST Act, 2017 — prescribes the limitation, the condonable extension, the mandatory 10% pre-deposit, and the automatic stay of the disputed demand upon filing a compliant appeal.
  • Form GST DRC-07, CGST Rules, 2017 — the assessment order/summary against which the delayed appeal was sought to be filed.

Decision – In Favour of

The decision is in favour of the assessee (Toptech Engineering), conditional on payment of the 10% pre-deposit and filing the appeal within seven days. The appeal was directed to be entertained without reference to limitation.

Case Details

Madurai Bench of Madras High Court; W.P.(MD)No.29573 of 2025 and W.M.P.(MD)Nos.22876 & 22878 of 2025; Coram: Hon'ble Mr. Justice G.R. Swaminathan; Order dated 17.10.2025.

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