Court grants liberty to file time-barred GST appeal upon 25% pre-deposit, directing decision on merits without limitation bar.

ORDER

Ms.Amirtha Poonkodi Dinakaran, learned Government Advocate takes notice for the Respondent.

2. This Writ Petition is disposed of at the admission stage itself with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondent.

3. The Petitioner is before this court against the impugned order dated

27.02.2025. By the impugned order, the proposal in Show Cause Notice in DRC-01 dated 26.11.2024 has been confirmed after considering the Petitioner’s reply.

4. The challenge to the impugned order is on the ground that the aforesaid notice was vague show cause notice and therefore, the demand confirmed by the impugned order is liable to be interfered with.

5. As such, the challenge to the impugned order at this distant point of time cannot be countenanced in view of the decision of the Hon’ble Supreme Court in Assistant Commissioner (CT) LTU, Kakinada and others Vs. Glaxo Smith Kline Consumer Health Care Limited, 2020 SCC Online SC

440 and therefore, this Writ Petition is liable to be dismissed.

6. Learned counsel for the Petitioner, at this stage submits that the entire disputed tax including the penalty has been reversed/paid for.

7. Learned Government Advocate, is however, unable to confirm the same.

8. 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. The present Writ Petition has been filed only on 18.03.2026.

9. At this juncture, the learned Counsel for the Petitioner submits that he is willing to deposit 25% of the disputed tax as a condition for seeking liberty to prefer an Appeal. In this regard, an endorsement has been made in the court bundle and the same is extracted hereunder:-

“Willing to deposit 25% of the disputed tax”

10. Considering the fact that the Petitioner may have a case on merits, I am inclined to give liberty to the Petitioner to challenge the impugned Order before the Appellate Authority, subject to the Petitioner depositing 25% of the disputed tax confirmed by the impugned order within a period of 30 days from the date of receipt of a copy of this order along with appeal.

11. In case, the Petitioner files such an appeal, within such time, together with such pre-deposit, the Appellate Authority shall dispose of the Appeal on merits without any reference to limitation. It is for the Petitioner to substantiate that the amount has already been recovered by producing the necessary certificates from the Jurisdictional Assessing Officer to that effect.

12. In case the amount has been recovered, no further pre deposit is required as the condition for entertaining the appeal and disposing it on merits.

13. In case the Petitioner complies with the above stipulations, the Appellate Authority shall proceed to pass a final order on merits and in its own turn and without reference to the issue of limitation. 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.

14. It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 25% 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.

15. 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.

16. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.

17. This Writ Pe