2025 (4) TMI 1506 - HC - GST

Tax Assessment Challenge Upheld: Pre-Deposit Ordered, Appeal Rights Preserved Under CGST Provisions for Fair Hearing

HC allowed writ petition challenging tax assessment, directing petitioner to deposit pre-deposit within two weeks. Upon payment, appellate authority must ... Failure to pre-deposit before filing of appeal - Reasonable cause - appeal dismissed due to non-compliance of mandatory pre-deposit requirement as prescribed under Section 107(6) of the CGST Act, 2017 - Challenge to N/N. 56/2023- Central Tax, issued by the first respondent on 28.12.2023, G.O.(Ms)No.1 of the Commercial Taxes and Registration (B1) Department, issued by the third respondent on 02.01.2024 and the assessment order passed by the fifth respondent - HELD THAT:- This Court is of the opinion that the petitioner's failure to deposit the pre-deposit amount at the time of filing the appeal was due to inadvertence. In the interest of justice, the petitioner is directed to deposit the required pre-deposit amount within a period of two weeks from the date of receipt of a copy of this order. Upon receipt of such payment, the appellate authority is directed to restore the appeal on file and pass appropriate orders on merits and in accordance with law, after giving due opportunity of hearing to the petitioner, within a period of three months thereafter. Petition disposed off. The Madras High Court, through Justice Vivek Kumar Singh, addressed a writ petition challenging Notification No.56/2023-Central Tax, G.O.(Ms)No.1 (Commercial Taxes and Registration Department), and an assessment order dated 18.04.2024 for AY 2018-2019. The respondents noted the petitioner had appealed the assessment order on 16.08.2024, but the appeal was dismissed on 30.01.2025 for non-compliance with the mandatory pre-deposit requirement under Section 107(6) of the CGST Act, 2017. The petitioner did not challenge this dismissal but sought to quash the underlying notifications and order via writ petition, which the Court initially found not maintainable.The petitioner contended the pre-deposit default was inadvertent and that the rejection order violated principles of natural justice by denying sufficient hearing. The Court, considering the inadvertence and in the interest of justice, directed the petitioner to deposit the required pre-deposit within two weeks. Upon payment, the appellate authority must restore the appeal and decide it on merits after due hearing within three months.The Court disposed of the writ petition accordingly, with no order as to costs, emphasizing compliance with Section 107(6) CGST Act and adherence to natural justice in appellate proceedings.