Facts of the Case

Karthick Loganathan (GSTIN 33HWJPK1239M1Z7) challenged an order under Section 73 of the TNGST Act, 2017 dated 27.02.2025 (Ref. No. ZD330225286384C) and the consequential Form GST DRC-07 summary of order relating to the year 2023-24 (February 2024), seeking that the order be quashed as illegal and in violation of natural justice, and that a fresh order be passed after affording personal hearing as per the provisions of the GST Act. Before the Court, it was accepted on both sides that the impugned order was appealable under the ordinary statutory scheme, and that the limitation period for filing that appeal had already expired by the time the petitioner approached the Court — but it was also undisputed that the petitioner had, in the meantime, already paid the entire tax amount demanded under the order.

Issues Involved

  1. Whether a belated GST appeal, filed after expiry of the limitation period prescribed under Section 107, should nonetheless be entertained where special facts exist.
  2. Whether, where the entire disputed tax amount has already been paid by the assessee, the usual 10% pre-deposit condition under Section 107(6)(b) for maintaining such an appeal should still be insisted upon.

Petitioner's Arguments

  • The impugned order was appealable but the limitation period had already expired by the time of filing the writ petition; nonetheless, the petitioner had already paid the entire tax amount demanded and had special facts and circumstances warranting equitable relief.

Respondent's Arguments

  • The Additional Government Pleader for the respondents did not seriously dispute the position, placed on record by the petitioner, that the entire disputed tax amount had already been paid.

Court Order / Findings

  • The Court accepted that the impugned order was appealable and that the ordinary limitation period for filing such an appeal had already expired, but, considering the special facts and circumstances of the case — chiefly, that the entire tax amount had already been paid by the petitioner — held that the petitioner should be permitted to file an appeal before the appellate authority.
  • The Court directed that if the appeal is filed within a period of four weeks from the date of receipt of a copy of the order, it shall be entertained without reference to limitation, effectively condoning the delay in substance.
  • The Court further and expressly held that 'the question of paying 10% of the disputed tax amount does not arise at all', since the entire tax stood already paid — thereby dispensing with the pre-deposit that would ordinarily be a precondition to maintaining the appeal.

Important Clarification

  • Where an assessee has already paid the entire disputed tax amount demanded under a GST assessment order, courts may permit a belated appeal to be filed and entertained without reference to the limitation bar under Section 107, and may also dispense with the requirement of the usual 10% pre-deposit under Section 107(6)(b), on the reasoning that the pre-deposit safeguard already stands satisfied in substance by the earlier full payment.

Sections Involved

  • Section 107, TNGST Act, 2017 — appeal to the appellate authority, including the limitation period and the 10% pre-deposit condition under sub-section (6)(b).
  • Section 73, TNGST Act, 2017 — determination of tax not paid or short paid other than by fraud, under which the original order was passed.

Decision – In Favour of

The writ petition was disposed of in favour of the Assessee, permitting a belated appeal without limitation bar and without any further pre-deposit requirement.

Case Details

Court: Madurai Bench of the Madras High Court
Case No.: W.P(MD)No.24605 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 17.11.2025

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