Facts of the Case

The petitioner, Tvl. Sri Udhayam Pipes & Traders, a GST registrant in Dindigul, suffered an ex-parte assessment order dated 24.06.2024 passed by the Assistant Commissioner (ST), Dindigul Rural Assessment Circle, under the assessment year 2021-22, followed by a summary of order in Form GST DRC-07. By the time the petitioner sought to challenge the order, the statutory limitation period for filing an appeal under Section 107 of the GST Act had already expired. The petitioner approached the Madurai Bench of the Madras High Court under Article 226, seeking quashing of the DRC-07 order as being without jurisdiction and in violation of statutory provisions.

Issues Involved

  1. Whether a taxpayer who suffered an ex-parte GST assessment order can be permitted to file a statutory appeal after expiry of the normal limitation period.
  2. What conditions, if any, should attach to entertaining such a belated appeal.

Petitioner's Arguments

  • The impugned order dated 24.06.2024 was passed ex-parte without adequate opportunity to the petitioner.
  • The order in Form GST DRC-07 is without jurisdiction and in gross violation of statutory provisions.
  • The petitioner ought to be permitted to pursue the statutory appellate remedy notwithstanding the expiry of limitation.

Respondent's Arguments

  • No specific defence on merits was pressed by the Additional Government Pleader; the matter was left to the discretion of the Court on the question of granting a further opportunity to appeal.

Court Order / Findings

  • The Court permitted the petitioner to file a statutory appeal within thirty days from receipt of the order, to be entertained without reference to limitation.
  • The petitioner was directed to pay 10% of the disputed tax amount as pre-deposit as a condition for the appeal being entertained.
  • It was made explicit 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 frequently use the writ jurisdiction to revive an appellate remedy that has become time-barred where an assessment order was passed ex-parte, but they condition such relief on payment of the statutory 10% pre-deposit and a strict time-limit, with automatic recall on default.
  • Such relief does not amount to a finding on the merits of the underlying tax demand; it merely restores access to the statutory appellate forum.

Sections Involved

  • Section 107, CGST Act, 2017 – appeal to the Appellate Authority and the statutory pre-deposit requirement.
  • Form GST DRC-07 – summary of the assessment order which triggered the limitation for appeal.

Decision – In Favour of

Disposed of in favour of the Assessee to the limited extent of restoring the appellate remedy on payment of 10% pre-deposit; the underlying tax demand remains to be adjudicated by the Appellate Authority.

Case Details

Madurai Bench of Madras High Court; W.P(MD)No.34038 of 2025 with W.M.P(MD)Nos.26857 & 26858 of 2025; Coram: Hon'ble Mr. Justice G.R. Swaminathan; Order dated 26.11.2025.

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