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2025 Supreme(Online)(Mad) 59365
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. Saravanan, J
M/s. Graced Retails – Appellant
Versus
The State Tax Officer, Chengalpattu Assessment Circle – Respondent
W.P.No.33116 of 2025 | W.M.P.Nos.37193 & 37194 of 2025
For the Appellants/Petitioners: Mr. S. Prabakaran
For the Respondents:Mrs. P. Selvi, Government Advocate
A court may permit a time-barred tax appeal if the petitioner deposits a substantial portion of disputed tax, balancing revenue and petitioner interests, and direct the appellate authority to decide the appeal on merits despite limitation.
Headnote:Statute Analysis, Facts and Findings: The petition was filed under "Article 226 of the Constitution of India" challenging an assessment order dated 05.02.2025 and raises delay in instituting the statutory appeal under "Section 107 of the respective GST enactment" (paras 1-2). The petition was filed on 16.08.2025 after the statutory period expired on 04.05.2025 and the condonable period expired on 04.06.2025; the petitioner cited financial constraints for delay and had earlier replied to a DRC-01 notice and attended personal hearing; 14 defects were pointed out, of which 9 were dropped and demand remained for 5 defects (paras 2-6). The Court noted these facts and, balancing the interests of revenue and the petitioner, permitted filing of the statutory appeal subject to deposit of Rs.17.50 lakhs (inclusive of 10% requirement) within 15 days and directed the Appellate Authority to decide the appeal on merits without reference to limitation (paras 7-8). Issues and Ratio: Issue framed by the proceedings is whether relief can be granted despite time-bar in view of the petitioner’s financial constraints and compliance with pre-assessment processes (paras 2,4-6). The Court’s reasoning rests on equitable balancing of interests: allowing a time-barred appeal if a substantial portion of disputed tax is deposited and procedural compliance has been shown, thereby protecting revenue while permitting adjudication on merits. The pivotal reasoning is captured in the order to permit filing within 15 days subject to deposit of Rs.17.50 lakhs and directing merit disposal "without reference to limitation" (paras 7-8).
Result: "With these directions, this Writ Petition stands disposed of."
| Table of Content |
|---|
| 1. nature of challenge and procedural delay in filing appeal (Para 1 , 2 , 3) |
| 2. financial hardship as reason for delay (Para 4) |
| 3. pre-assessment compliance and partial dropping of defects (Para 5 , 6) |
| 4. conditional condonation: deposit requirement and merits adjudication despite limitation (Para 7 , 8) |
| 5. consequences of non-compliance and disposal order (Para 9) |
ORDER
In this Writ Petition, the petitioner has challenged the impugned Assessment Order dated 05.02.2025 passed by the respondent for the assessment period 2020-2021.
2. The Writ Petition has been filed on 16.08.2025 i.e. after lapse of the statutory period for filing an appeal under Section 107 of the respective GST enactment. The statutory period has expired on 04.05.2025 and condonable period has expired on 04.06.2025.
3. The petitioner firm appears to be a growing firm and it is engaged in wholesale and retail trading of fast-moving consumer goods.
4. The case of the petitioner is that, due to financial constraints, they were unable to file an appeal in time and therefore, approached this Court to quash the impugned Assessment Order dated 05.02.2025.
5. It is noticed that the petitioner was issued with a Notice in DRC-01 dated 31.08.2024. The petitioner had replied to the same on 29.01.2025 and had also appeared during personal hearing.
6. It is further noticed that 14 defects were pointed out in the Notice in DRC-01 dated 31.08.2024, and out of 14 defects, 9 defects were dropped and demand was made only for the remaining 5 defects.
7. Considering the same, to balance the interest of the petitioner and the revenue, this Court is inclined to permit the petitioner to file a statutory appeal within a period of 15 days from the date of receipt of a copy of this order, subject to petitioner depositing a sum of Rs.17.50 lakhs of the disputed tax amount in cash from the Petitioner's Electronic Cash Register, which will be inclusive of 10% of the disputed tax required to be paid before filing of the statutory appeal under respective GST Acts.
8. If the petitioner files such appeal and deposits Rs.17.50 lakhs of the disputed tax, the Appellate Authority namely Appellate Deputy Commissioner (ST) (GST Appeal), Chennai, shall dispose of the appeal on merits after hearing the petitioner without reference to limitation.
9. In case the petitioner fails to comply with the same, the respondent is at liberty to proceed against the petitioner in accordance with law as if this Writ Petition was dismissed in limine today.
10. With these directions, this Writ Petition stands disposed of.
Consequently, connected miscellaneous petitions are closed. No costs.
