Facts of the Case

The petitioner, Tvl. R.R. Textiles, represented by its proprietor R. Kannan, challenged an order dated 24.02.2025 passed by the Assistant Commissioner (ST), Thirumangalam Assessment Circle, confirming a total tax demand of Rs.1,39,938, of which Rs.77,626 had already been recovered from the petitioner. The petitioner had been afforded an opportunity of hearing before the impugned order was passed.

Issues Involved

  1. Whether the petitioner should be granted liberty to file a statutory appeal under Section 107 of the TNGST Act, notwithstanding the prescribed limitation period, given that a substantial part of the demand had already been recovered.
  2. Whether the bank attachment made pursuant to the demand ought to be released in view of the partial recovery.

Petitioner's Arguments

  • Since a substantial part (Rs.77,626 out of Rs.1,39,938) of the tax demand had already been recovered, the petitioner sought liberty to pursue the statutory appellate remedy and release of the attached bank account.

Respondent's Arguments

  • The Additional Government Pleader appeared for the respondent; the impugned order itself recorded that the petitioner had been afforded a hearing before it was passed.

Court Order / Findings

  • Taking note of the fact that Rs.77,626 out of the total demand of Rs.1,39,938 had already been recovered, the Court was inclined to grant liberty to the petitioner to file a statutory appeal before the Deputy Commissioner (GST-Appeal) within fifteen days.
  • Subject to filing the appeal within the stipulated time, the Appellate Authority was directed to entertain and dispose of it on merits, without reference to the limitation prescribed under Section 107 of the TNGST Act.
  • Since Rs.77,626 had already been recovered towards the demand, the bank account attachment was directed to be released forthwith; failure to file the appeal in time would allow the respondent to proceed as if the writ petition stood dismissed in limine.

Important Clarification

  • Where a substantial part of a confirmed GST demand has already been recovered from the taxpayer, the High Court may grant liberty to file a statutory appeal under Section 107 without reference to the limitation period, while simultaneously directing release of any consequent bank attachment.

Sections Involved

  • Section 107, Tamil Nadu Goods and Services Tax Act, 2017 — appeal to the Appellate Authority and prescribed limitation.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee — appellate remedy granted without limitation bar, and bank attachment released.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P.(MD)No.23333 of 2025 and W.M.P.(MD)No.18336 of 2025
Coram: Hon'ble Mr. Justice C. Saravanan
Date of Order: 26.08.2025

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