2026 (1) TMI 421 - HC - GST

Statutory tax appeal delayed despite 10% pre-deposit; time-bar rejection set aside, case remitted on 40% more deposit

The dominant issue was whether rejection of the petitioner's statutory appeal as time-barred warranted interference where 10% of the disputed tax had ... Rejection of petitioner’s appeal against the Assessment order - appeal was filed beyond the limitation period for filing an appeal against the order dated 12.08.2024 - at the time of filing an appeal on 18.09.2025, the petitioner had pre-deposited 10% of the disputed tax - HELD THAT:- Considering the petitioner’s submissions and following the consistent view taken by this Court under similar circumstances, the case is remitted back to the 1st respondent to pass a fresh order on merits, subject to the petitioner depositing 40% of the disputed tax in cash or from petitioner’s Electronic Cash Register, over and above 10% of the disputed tax already pre-deposited at the time of filing of an appeal, within 30 days from the date of receipt of a copy of this order - Within such time, the Petitioner shall also file an additional reply to the Show Cause Notice together with requisite documents to substantiate the defence by treating the impugned order as an addendum to the Show Cause Notice. In the event of the petitioner complying with the above stipulations, the 1st 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 from the date of such reply/pre-deposit. Subject to such compliance, the attachment of the petitioner’s bank account shall also stand automatically raised/vacated. In case the petitioner fails to comply with any of the above stipulations, the 1st respondent is at liberty to proceed against the petitioner to recover the tax in accordance with law, as if this writ petition had been dismissed in limine today - Petition disposed off. The writ petition challenged an appellate order dated 22.09.2025 rejecting an appeal against an assessment order dated 12.08.2024, preceded by DRC-01 notice dated 24.05.2024. The petitioner had replied to the show cause notice on 22.06.2024; the assessing authority found the reply unacceptable and confirmed demands for 2018-19 aggregating to total tax, interest, and penalty of Rs. 11,23,204 (CGST Rs. 5,61,602 and SGST Rs. 5,61,602). The appeal filed on 18.09.2025 was beyond limitation, though accompanied by a pre-deposit of 10% of the disputed tax. Following the Court's consistent approach in similar matters, the case was remitted to the assessing authority for a fresh order on merits, subject to the petitioner depositing an additional 40% of the disputed tax (in cash/electronic cash ledger) within 30 days, over and above the 10% already pre-deposited. The petitioner must file an additional reply with supporting documents, treating the impugned order as an addendum to the show cause notice. On compliance, a final order should be passed preferably within three months, and bank attachment will be automatically vacated, subject to the deposit and no other arrears. Non-compliance permits recovery proceedings 'as if this writ petition had been dismissed in limine today,' after hearing the petitioner.