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2026 Supreme(Online)(Mad) 34595
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J
M/s.Vijay Shanthi Builders Limited – Appellant
Versus
The Assistant Commissioner (ST), Alwarpet Assessment Circle – Respondent
WMP Nos.16320 &16325 of 2026
For Petitioner(s): Mr. B. Syed Abdul Wakeel
For Respondent(s): Mr. C. Harsharaj, Special Government Pleader
Court remanded GST assessment for de novo adjudication on petitioner's pre-deposit of 50% disputed tax despite expired appeal limitation.
Headnote:The petitioner challenged an assessment order under GST enactments for the period April 2018-March 2019, issued vide FORM GST DRC-07 and detailed order dated 29.04.2024, confirming a show cause notice dated 30.01.2024. The writ petition was filed beyond the limitation period for appeal under Section 107 of the CGST Act, 2017. The court noted the petitioner's failure to respond to the SCN or attend the hearing. The court framed the issue as condonation of delay and grant of opportunity despite expired limitation. The ratio decidendi permitted remand for de novo adjudication on consent, subject to pre-deposit of 50% disputed tax (less recoveries), filing reply to SCN, and fresh hearing. The writ petition stands disposed of, remitting the matter back to the respondent for fresh order on merits within three months of compliance, with automatic vacation of bank attachment upon deposit; non-compliance allows recovery proceedings.
| Table of Content |
|---|
| 1. notice taken and admission-stage disposal by consent. (Para 1 , 2) |
| 2. challenge to impugned order beyond appeal limitation. (Para 3) |
| 3. petitioner's request for remand with 50% pre-deposit accepted. (Para 5 , 6) |
| 4. remand for de novo adjudication subject to compliance conditions. (Para 7 , 8 , 9 , 10 , 11 , 12) |
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 29.04.2024, long after the expiry of limitation, whereby the proposal in the Show Cause Notice dated 30.01.2024, for the assessment period April 2018 – March 2019 has been confirmed, 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 29.04.2024.
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 15.04.2026.
5. The learned counsel for the Petitioner submits that the Petitioner may be given one more opportunity to establish the case. He further submits that the Petitioner is willing to deposit 50% of the disputed tax and prays to less the amount, already recovered from the Petitioner or paid for the disputed tax, as a condition for denovo adjudication. An endorsement has also been made in the bundle by the learned counsel for the Petitioner. The said endorsement reads as under:-
“ The petitioner undertakes to pay 50% of the disputed tax as a condition for remand but in view of 50% already recovered, it may be subject to verification.”
6. The learned Special Government Pleader for the Respondent has no objection for the same.
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 50% 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, less any amount recovered from the Petitioner or paid by the Petitioner against the disputed tax. This will be, however, subject to verification of the Respondent.
8. Within such time, the Petitioner shall also file a reply to the Show Cause Notice dated 30.01.2024 together with requisite documents to substantiate the case by treating the impugned Order dated 29.04.2024 as an addendum to the Show Cause Notice dated 30.01.2024.
9. 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.
10. It is made clear that bank attachment shall be lifted subject to the Petitioner depositing 50% 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.
11. 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.
12. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
13. This Writ Petition stands disposed of with the above observations.
