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2026 Supreme(Online)(Mad) 31311
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J
Tvl. Santhosh and Co. – Appellant
Versus
The Deputy Commercial Tax Office Ponneri Assessment Circle – Respondent
WMP Nos.12516 & 12517 of 2026
For Petitioner(s): Mr.Kamala Kanth S
For Respondent(s):Mrs.P.Selvi Government Advocate
Remittal for de novo GST adjudication upon 25% pre-deposit despite expired appeal limitation.
Headnote:The petitioner challenged a GST assessment order dated 06.02.2025 issued under relevant GST enactments for the tax period April 2020 to March 2021, following a Show Cause Notice dated 25.11.2024 to which no reply was filed. The court noted the expiry of the limitation period under Section 107 for statutory appeal. The court accepted the petitioner's offer to pre-deposit 25% of disputed tax for de novo adjudication. Issues framed involved procedural compliance and opportunity for hearing post SCN. The ratio decidendi emphasized remittal for fresh order on merits upon pre-deposit and reply submission, with automatic vacation of bank attachment if conditions met, failing which recovery proceedings permissible. Writ petition disposed of with directions for compliance and expeditious fresh order within three months.
| Table of Content |
|---|
| 1. challenge to gst order post scn non-response and appeal limitation expiry. (Para 2 , 3 , 4) |
| 2. petitioner's consent to 25% tax pre-deposit. (Para 5) |
| 3. remittal for fresh order upon pre-deposit and scn reply. (Para 6 , 7 , 8) |
| 4. conditional bank attachment lift; recovery if non-compliance. (Para 9 , 10 , 12) |
ORDER
Mrs.P.Selvi, learned Government Advocate 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 Government Advocate for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 06.02.2025, which was preceded by a Show Cause Notice in GST DRC-01 dated 25.11.2024 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
06.02.2025.
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
18.03.2026.
5. At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 25% of the disputed tax as a condition for denovo adjudication and he has also made an endorsement to that effect in the Court bundle, which has been extracted hereunder:-
“The Petitioner Accepted. The 25% of Tax dispute will be paid.”
6. 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 25% 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.
7. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 25.11.2024 together with requisite documents to substantiate the case by treating the impugned Order dated
06.02.2025 as an addendum to the Show Cause Notice dated 25.11.2024.
8. 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.
9. 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.
10. 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. 11. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
12. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
