Facts of the Case

Tvl. Pio Agencies challenged an order dated 29 January 2025, preceded by a notice in DRC-01 dated 17 October 2024, after its statutory appeal against the order was dismissed by the Deputy Commissioner (CT) on 10 July 2025 as filed beyond the condonable period of limitation. By the time of the writ petition, 100% of the disputed tax had already been recovered from the petitioner's bank account (on 12.06.2025) in addition to 10% deposited at the time of filing the appeal.

Issues Involved

  1. Whether, notwithstanding the time-barred dismissal of the statutory appeal, the writ court could grant relief given that the entire disputed tax already stood recovered/deposited.

Petitioner's Arguments

  • Since 100% of the disputed tax had been recovered from the bank account after the impugned order, in addition to the 10% pre-deposit made at the appeal stage, the petitioner ought to be granted an opportunity to contest the demand on merits rather than being left without recourse merely because the appeal was time-barred.

Respondent's Arguments

  • (No separate substantive opposition to the relief is recorded, the Additional Government Pleader having consented to disposal on the above terms.)

Court Order / Findings

  • Considering that the Revenue's interest already stood fully secured through recovery of the entire disputed tax, the Court quashed the impugned order and remitted the matter to the first respondent to pass a fresh order on merits, treating the impugned order as an addendum to the original DRC-01 notice, subject to the petitioner filing a reply within 30 days.
  • On compliance, the first respondent was directed to pass a fresh, merits-based order within three months after hearing the petitioner; failing compliance, the respondents were left at liberty to proceed as if the writ petition had been dismissed in limine.

Important Clarification

  • Where the entire disputed tax already stands recovered or secured, courts may grant a conditional merits-hearing even after a time-barred dismissal of the statutory appeal, by treating the confirmed order as an addendum to the original show cause notice and permitting a fresh reply — balancing the Revenue's secured position against the assessee's right to be heard.

Sections Involved

  • Form GST DRC-01 – show cause notice for demand of tax.
  • Section 107, CGST/TNGST Act, 2017 – statutory appeal and limitation.

Decision – In Favour of

Disposed of in favour of the Assessee, conditionally – the order is quashed and remitted for a fresh merits hearing, subject to compliance with the stipulated reply timeline.

Case Details

  • Court: Madurai Bench of Madras High Court
  • Case No.: W.P.(MD) No. 21235 of 2025
  • Coram: Hon'ble Justice C. Saravanan
  • Date of Order: 4 August 2025

Link to Download the Order

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