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2026 Supreme(Online)(Mad) 26546
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J
M/s.K H Leather Belts Rep by its Prop. Kateem Hassan – Appellant
Versus
The Deputy State Tax Officer- I O/o.The Deputy Commercial Tax Officer Ward-D Block -30 – Respondent
WMP Nos.12691 &12693 of 2026
For the Petitioner(s): Ms.A.Rithika
For the Respondent(s): Mr.C.Harsharaj Special Government Pleader
Writ petition remitted for de novo GST adjudication upon 10% pre-deposit despite expired appeal limitation.
Headnote:The petitioner challenged an order in FORM GST DRC-07 dated 25.10.2025 issued under GST enactments for AY 2023-24, following a Show Cause Notice in GST DRC-01 dated 21.04.2025. The petitioner failed to respond or attend the hearing, leading to confirmation of disputed tax. Limitation for appeal under Section 107 had expired. The court noted post-facto recovery of the tax. The issue was the validity of the impugned order and remedy due to missed appellate limitation. The court considered the petitioner's consent to pre-deposit 10% of disputed tax for fresh adjudication, treating the impugned order as an addendum to the SCN. Writ petition disposed of; matter remitted for de novo adjudication subject to 10% pre-deposit within 30 days, reply to SCN, and final order within 3 months; bank attachment vacated upon compliance.
| Table of Content |
|---|
| 1. challenge to gst order post-expired appeal limitation. (Para 2 , 3 , 4) |
| 2. petitioner's consent to 10% pre-deposit. (Para 5 , 6 , 7) |
| 3. remand for de novo adjudication with conditions. (Para 8 , 9 , 10 , 11 , 12 , 14) |
ORDER
Mr.C.Harsharaj, learned Special Government Pleader takes notice for the Respondent.
2. This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Special Government Pleader for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 25.10.2025, which was preceded by a Show Cause Notice in GST DRC-01 dated 21.04.2025 wherein the Petitioner was called upon to file a reply and to appear for a personal hearing. However, the Petitioner did not take advantage of the same and has thus suffered the impugned Order dated
25.10.2025.
4. It is noticed that the limitation for filing an appeal under Section 107 of the respective GST enactments, 2017 against the impugned Order has already expired long before. However, the present Writ Petition has been filed only on
23.03.2026.
5.The learned counsel for the petitioner submits that the entire disputed tax confirmed by the Impugned Order dated 25.10.2025 has been recovered post-facto factor. Hence, the learned counsel for the petitioner submits that the petitioner will deposit 10% of the disputed tax subject to verification by the respondent.
6. At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 10% of the disputed tax as a condition for denovo adjudication and he has also made an endorsement to that effect in the Court bundle.
7. The learned counsel for the Petitioner has also made an following endorsement to that effect in the Court bundle which has been extracted hereunder:-
“Petitioner consent to deposit 10% of respective demand.”
8. Recording the above consent given by the Petitioner, the case is remitted back to the Respondent to pass a fresh order on merits subject to the Petitioner depositing 10% of the disputed tax in cash or from the Petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order.
9. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 21.04.2025 together with requisite documents to substantiate the case by treating the impugned Order dated
25.10.2025 as an addendum to the Show Cause Notice dated 21.04.2025.
10. In case the Petitioner complies with the above stipulations, the Respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such reply/pre-deposit. Subject to the Petitioner complying with the above stipulations, the attachment of the bank account of the Petitioner if any, shall also stand automatically vacated.
11. It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 10% of the disputed tax as ordered above and the Petitioner not being in arrears of any other amount for any other tax period barring the amount demanded under the impugned Order.
12. In case the Petitioner fails to comply with any of the stipulations, the Respondent is at liberty to proceed against the Petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine today. 13. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
14. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
