Facts of the Case

Tvl.BMK Agency (GSTIN 33DRBPK1924A1ZI) suffered an ex parte assessment order dated 13.01.2025 in Form GST DRC-07 passed by the Deputy State Tax Officer-1, Devakottai Assessment Circle, for the tax period 2020-2021. By the time the petitioner approached the Madurai Bench of the Madras High Court, the statutory appeal period had already expired. Since the order was passed in the petitioner's absence without a personal hearing, the petitioner sought a direction permitting it to file a belated appeal, and the entire disputed tax amount had, in the meantime, already been recovered by the Department.

Issues Involved

  1. Whether the petitioner should be permitted to file an appeal against the ex-parte assessment order after expiry of the appeal period, in the interest of natural justice.
  2. Whether a 10% pre-deposit under Section 107 of the GST Act is required where the entire disputed tax amount has already been recovered by the Department.

Petitioner's Arguments

  • The impugned order was passed ex parte without an opportunity of personal hearing, and the appeal period had already lapsed by the time the petitioner sought legal recourse.
  • Since the entire disputed amount had already been recovered by the Department, no further pre-deposit ought to be insisted upon as a precondition for entertaining a belated appeal.

Respondent's Arguments

  • The Government Advocate did not seriously contest the plea for permitting a belated appeal, given that the order was passed ex parte and the amount already stood recovered.

Court Order / Findings

  • 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.
  • Since the entire disputed amount had already been recovered from the petitioner, the Court held that the requirement of depositing 10% of the disputed tax as pre-deposit under Section 107 of the GST Act did not arise at all.
  • The Court clarified that if the petitioner failed to file the appeal within thirty days, the benefit of the order would stand automatically recalled.

Important Clarification

  • Where the entire disputed tax demand raised in an ex parte GST assessment order has already been recovered by the Department (whether through coercive recovery or otherwise), courts will not insist on the additional 10% pre-deposit ordinarily required under Section 107 for filing an appeal.
  • Courts frequently permit belated appeals against ex parte assessment orders to be filed 'without reference to limitation,' particularly where full recovery has already occurred and no further prejudice to revenue exists.

Sections Involved

  • Section 107, TNGST/CGST Act, 2017 — governs the limitation and the 10% pre-deposit condition for filing an appeal against an adjudication order.
  • Form GST DRC-07, CGST Rules, 2017 — the summary of the demand order issued upon completion of assessment.

Decision – In Favour of

The decision is in favour of the assessee (Tvl.BMK Agency). The petitioner was permitted to file a belated appeal without limitation and without any further pre-deposit, since the full disputed amount had already been recovered.

Case Details

Madurai Bench of Madras High Court; W.P(MD)No.33132 of 2025 and W.M.P(MD)No.26146 of 2025; Coram: Hon'ble Mr. Justice G.R. Swaminathan; Order dated 19.11.2025.

Link to Download the Order

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