Facts of the Case

M/s. Chendur Pandi Engineering Works, of North Street, Muthaiahpuram, Tuticorin, challenged an assessment order dated 03.11.2023 for the tax period April 2018-March 2019, preceded by a show cause notice in Form GST DRC-01 dated 01.09.2023. The petitioner admittedly neither filed a reply to the notice nor participated in the personal hearing, and approached the Court only long after the order was passed, orally requesting to be permitted to pursue an appeal before the Appellate Commissioner at that distant point in time.

Issues Involved

  1. Whether a taxpayer who slept over its rights for an extended period can still be permitted to file a statutory appeal beyond the condonable limitation period.
  2. If the appellate route is foreclosed, on what terms, if any, should writ relief be granted for an ex parte order passed without any participation by the assessee.

Petitioner's Arguments

  • The petitioner had a prima facie case on merits and should be permitted to pursue the statutory appellate remedy under Section 107 despite the delay.

Respondent's Arguments

  • No specific opposition beyond relying on the impugned order; the Additional Government Pleader appeared on notice.

Court Order / Findings

  • Relying on the Supreme Court's rulings in Singh Enterprises v. CCE, (2008) 3 SCC 70, and CCE and Customs v. Hongo India (P) Limited, (2009) 5 SCC 791, the Court held that permitting an appeal at this distant point in time, beyond the condonable period, cannot be allowed.
  • However, considering that the petitioner had at least not replied to the show cause notice (rather than actively litigating and losing), the Court was inclined to grant one final opportunity, though the delay here was 'huge' compared to the marginal delays where a 25% deposit is usually ordered.
  • Balancing the interests of the petitioner and the Revenue, the writ petition was disposed of by quashing the impugned order subject to a steep 50% deposit of the disputed tax in cash from the Electronic Cash Register, within 30 days.
  • The petitioner was directed to file a reply to the original show cause notice within that time, with the quashed order to be treated as an addendum to that notice, and the respondent to pass a fresh order on merits expeditiously.
  • Failure to comply with any condition would result in the writ petition being deemed dismissed, leaving the department free to proceed under the GST enactments.

Important Clarification

  • Where the ordinary route of a statutory appeal is time-barred beyond what any authority can condone (per Singh Enterprises/Hongo India), the writ court may still grant conditional relief directly against the assessment order — but the size of the pre-deposit scales with the extent of the assessee's own delay and non-participation, here a steep 50% rather than the more usual 10-25%.
  • Such conditional relief is structured as a strict, self-executing condition: non-compliance with any term automatically revives the dismissal of the writ petition, without the need for a further order.

Sections Involved

  • Section 73, CGST/TNGST Act, 2017 — determination of tax not involving fraud or suppression.
  • Section 107, CGST Act, 2017 — appellate remedy and its limitation period, held here to be beyond condonation.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee — the appellate remedy is denied as time-barred, but the assessment order is nonetheless quashed on a steep 50% pre-deposit condition.

Case Details

Madurai Bench of Madras High Court; W.P(MD) No. 23475 of 2025 and W.M.P(MD) Nos. 18445 & 18446 of 2025; Coram: Hon'ble Mr. Justice C. Saravanan; Order dated 29.08.2025.

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