Facts of the Case

The petitioner suffered an ex parte order dated 21.02.2025 in Form GST DRC-07 passed by the Commercial Tax Officer, Rajapalayam-1 Assessment Circle. By the time the writ petition was filed, the statutory appeal period had already expired, and the Court further noted that the petitioner had approached it belatedly.

Issues Involved

  1. On what terms a belated appeal against an ex parte GST assessment order can be permitted where the assessee has also delayed in approaching the writ court itself.

Petitioner's Arguments

  • Sought quashing of the DRC-07 order as being without jurisdiction and in clear violation of statutory provisions.

Respondent's Arguments

  • The Additional Government Pleader appeared for the respondent; the order proceeded on the standard conditional-liberty terms applied by the Court, enhanced here because of the petitioner's own delay in approaching the Court.

Court Order / Findings

  • The Court permitted the petitioner to file an appeal within thirty days of receiving a copy of the order, to be entertained without reference to limitation — but, because the petitioner had approached the Court belatedly, required a higher pre-deposit of 15% of the disputed tax (rather than the ordinarily mandatory 10%).
  • If the petitioner failed to remit the pre-deposit and/or file the appeal within four weeks, the benefit of the order would stand automatically recalled.
  • On filing of the appeal (with the enhanced pre-deposit), the attachment effected on the petitioner's bank account was directed to be raised forthwith.

Important Clarification

  • Where an assessee seeking the benefit of a belated appeal against an ex parte GST order has itself delayed in approaching the writ court, the Madras High Court may condition the relief on a higher pre-deposit (15% instead of the standard 10%) as the price for the extra indulgence, while still linking release of any bank attachment to the appeal actually being filed.

Sections Involved

  • Form GST DRC-07, CGST Rules, 2017 — summary of the assessment order.
  • Section 107, GST Act, 2017 — appeal and pre-deposit requirement, relaxed on limitation but enhanced on quantum here.

Decision – In Favour of

Disposed of with directions, in favour of the Assessee to the extent of restoring the appellate remedy on an enhanced pre-deposit; no finding was made on the merits of the ex parte assessment.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P(MD)No.32278 of 2025 and W.M.P.(MD)Nos.25383 & 25386 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 13th November, 2025

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