Back
2026 Supreme(Online)(Mad) 31427
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J
Tvl. AKI and Co Rep by its Managing Partner – Appellant
Versus
Commercial Tax Officer / State Tax Officer Sankari Circle , Sankari, Namakkal, Salem – Respondent
WMP Nos. 12223 and 12224 of 2026
For the Appellants/Petitioners: Ms.R.Sri Visvapriya
For the Respondents:Mrs.K.Vasanthamala Government Advocate
High Court remits GST assessment order for de novo adjudication upon 25% pre-deposit despite expired appeal limitation.
Headnote:The petitioner challenged an order dated 14.10.2025 passed under Section 73 of the GST Act confirming tax liability for April 2021 to March 2022. Essential facts include issuance of show cause notice dated 23.05.2025, confirmation of demand, partial recovery from electronic credit ledger, and expiry of appeal limitation under Section 107. The court found that while the appeal period had lapsed, the petitioner sought remittal for fresh adjudication upon pre-deposit. The core issue was whether to quash the impugned order or remit the matter back for de novo adjudication given the procedural circumstances. The ratio decidendi holds that courts may remit GST assessment orders for fresh consideration subject to the petitioner depositing 25% of disputed tax, adjusting prior recoveries, and filing a reply to the show cause notice, ensuring expeditious re-adjudication within three months. The writ petition was disposed of, remitting the case back to the respondent for passing a fresh order on merits upon compliance with pre-deposit and procedural stipulations; connected miscellaneous petitions closed.
| Table of Content |
|---|
| 1. challenged gst order confirmed after show cause notice. (Para 2 , 3 , 4) |
| 2. petitioner consents to 25% pre-deposit. (Para 5 , 6) |
| 3. remitted for fresh adjudication with conditions. (Para 7 , 8 , 9 , 10 , 11) |
| 4. non-compliance allows recovery; petition disposed. (Para 12 , 14) |
ORDER
K.Vasanthamala, 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 14.10.2025, whereby, the proposal in Show Cause Notice dated 23.05.2025 issued under Section 73 of the Tax Period from April 2021-
March-2022 has been confirmed.
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. The present Writ Petition has been filed only on 17.03.2026.
5. The learned counsel for the Petitioner submitted that the Petitioner may be given an opportunity to establish the case by remitting the case back to the respondent. The learned counsel for the Petitioner further submits that as against the total demand of Rs.04,08,420/- (Rs.2,04,210/- each) towards the SGST Tax Liability has been recovered from the Petitioner Electronic Credit Ledger on 12.01.2026. In support of the same, the learned counsel for the Petitioner has also drawn an attention to extract the Electronic Credit Ledger, which primafacie indicates that part of the tax liability has been confirmed, the petitioner shall deposit 25% of the disputed tax as a condition for denovo adjudication.
6. The learned counsel for the Petitioner has also made an endorsement to that effect in the Court bundle, which is extracted hereunder:-
“ It is submitted that the SGSTportion of the tax demand Rs.2,04,210/- has been recovered on 12.01.2025 by debiting the ECL. Petitioner undertakes to deposit 25% of the tax liability, if Dept is unable to verify. The amount already recovered may be adjusted towards 25%
pre deposit”
7. Recording the above consent, 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.
8. Needless to state, any amount recovered from the Petitioner, towards the tax Liability confirmed vide impugned order, shall be adjusted towards the aforesaid pre-deposit of 25% as ordered above.
9. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 23.05.2025 together with requisite documents to substantiate the case by treating the impugned Order dated
14.10.2025 as an addendum to the Show Cause Notice dated 23.05.2025
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 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.
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 Petiti
