Back
2026 Supreme(Online)(Mad) 42041
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. Saravanan, J
Raksha Apparels and Exporters – Appellant
Versus
Deputy State Tax Officer-2 – Respondent
WMP.No.18532 of 2026
For the Appellants/Petitioners: Devanand.J.R
For the Respondents: C.Harsharaj
The court may allow de novo adjudication in tax assessment matters despite the expiry of the appeal period, provided the assessee consents to a pre-deposit of a specified portion of the disputed tax liability.
Headnote:The petitioner challenged an assessment order finalized in the absence of a response or personal appearance, despite multiple notices. The court observed that the statutory appeal period had lapsed significantly. Consequently, the petitioner proposed to deposit 50% of the disputed tax to enable a de novo adjudication process. The core issues involved the validity of the ex-parte assessment order and whether the petitioner should be granted a fresh opportunity for adjudication. The court, acting upon the petitioner's voluntary undertaking to pay a portion of the tax demand, exercised its discretion to restore the matter for fresh consideration to ensure a fair opportunity for the assessee to present their case. The writ petition was disposed of with a direction to the respondent to pass a fresh order following the pre-deposit and submission of a reply by the petitioner.
| Table of Content |
|---|
| 1. procedural background and failure to respond to notices. (Para 1 , 2 , 3 , 5) |
| 2. granting de novo adjudication based on voluntary pre-deposit of disputed tax. (Para 6 , 7 , 8 , 9 , 10 , 11) |
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 09.04.2025, which was preceded by a Show Cause Notice in GST DRC-01 dated 04.01.2024 wherein the Petitioner was called upon to appear for personal hearing. However, the Petitioner had not taken advantage of the same and thus, suffered the impugned Order dated 09.04.2024.
4. The Petitioner was also issued with Reminder on 19.03.2024 and
21.03.2024 which called upon the Petitioner to file a reply and to appear for a personal hearing. However, the Petitioner neither filed any reply nor appeared for the personal hearing despite multiple opportunities. Thus, the impugned Order has been passed.
5. 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
27.04.2026.
6. At this stage, the learned counsel for the Petitioner submits that the Petitioner is willing to pre-deposit 50% of the disputed tax as a condition for denovo adjudication. The learned counsel for the Petitioner has also made an endorsement to that effect in the Court bundle which is extracted hereunder:-
“I the counsel for petitioner, Do, hereby consent to deposit 50% of the disputed tax.”
7. 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 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.
8. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 04.01.2024 together with requisite documents to substantiate the case by treating the impugned Order dated
09.04.2024 as an addendum to the Show Cause Notice dated 04.01.2024.
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.
No costs. Connected Writ Miscellaneous Petition is closed.
