Facts of the Case

The petitioner, M/s.Pathmakiruthiga Enterprises, a proprietary concern of M.Muthumari based at Virudhunagar, Tamil Nadu, was aggrieved by an ex-parte assessment order dated 28.03.2023 passed by the Superintendent of GST & Central Excise, Rajapalayam-II Range (second respondent), vide reference No.O.C.53/2023. The order came to be passed without the petitioner participating in the proceedings, and by the time the petitioner approached the Madurai Bench of the Madras High Court, the normal statutory appeal period had already lapsed. In the meantime, the petitioner's bank account had been attached by the Department for recovery of the disputed tax. The petitioner filed this writ petition under Article 226 of the Constitution seeking a writ of certiorari to quash the assessment order as illegal and violative of the principles of natural justice.

Issues Involved

  1. Whether a statutory appeal against an ex-parte GST assessment order can be entertained by the appellate authority even after the normal limitation period has expired.
  2. Whether the bank attachment made pursuant to the assessment order should continue pending such a belated appeal.

Petitioner's Arguments

  • The assessment order was passed ex-parte, without the petitioner having had a real opportunity to be heard.
  • By the time legal advice was obtained and the writ petition filed, the ordinary appeal period had already run out.
  • The attachment of the petitioner's bank account was causing serious hardship and needed to be lifted.
  • Sought quashing of the assessment order, or in the alternative, a fair opportunity to contest it before the appellate authority.

Respondent's Arguments

  • Represented before the Court but did not seriously contest a conditional opportunity being granted to the petitioner to pursue the statutory appellate remedy.
  • Maintained that any such indulgence must be subject to compliance with the mandatory pre-deposit requirement under the GST appeal provisions.

Court Order / Findings

  • Recorded that the petitioner had suffered an ex-parte order and that the appeal period had already expired.
  • Permitted the petitioner to file a statutory appeal within thirty days from receipt of the order, directing that it shall be entertained without reference to limitation.
  • Made this relief conditional on the petitioner paying 10% of the disputed tax amount as mandatory pre-deposit.
  • Directed that on the petitioner remitting the 10% pre-deposit and filing the appeal within the stipulated time, the attachment on the petitioner's bank account shall stand lifted.
  • Clarified that if the petitioner fails to pay the pre-deposit and/or file the appeal within thirty days, the benefit of the order shall stand automatically recalled.
  • Disposed of the writ petition accordingly, with no order as to costs; connected miscellaneous petitions closed.

Important Clarification

  • Even where the ordinary limitation for filing a GST appeal has already expired, a High Court can direct that a belated appeal against an ex-parte assessment order be entertained without reference to limitation, conditional on payment of the mandatory 10% pre-deposit.
  • A bank attachment made to recover the disputed demand can correspondingly be directed to be lifted once the pre-deposit is paid and the appeal is filed within the time fixed -- but this relief is self-executing in reverse: non-compliance results in automatic revival of the attachment and loss of the benefit.

Sections Involved

  • Section 107, CGST Act, 2017 -- governs appeals to the appellate authority against an order of assessment, including the mandatory pre-deposit for the appeal to be entertained.
  • Article 226 of the Constitution of India -- invoked for the writ of certiorari against the ex-parte assessment order.

Decision – In Favour of

Disposed of with conditional directions, substantially in favour of the Assessee: the petitioner was granted an opportunity to pursue the statutory appellate remedy despite the expiry of limitation, and the bank attachment was directed to be lifted, subject to timely payment of the 10% pre-deposit and filing of the appeal.

Case Details

Court: Madurai Bench of the Madras High Court
Case No.: W.P.(MD)No.34764 of 2025 with W.M.P.(MD)Nos.27466 & 27467 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 28.11.2025

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