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. Issues: Whether the matter should be remitted to the assessing authority for fresh adjudication despite delay in filing the appeal, and on what conditions (pre-deposit, filing of additional reply, and lifting of bank attachment) such remittance and interim relief should be granted.Analysis: The petition challenges confirmation of tax, interest and penalty by the assessing authority following a Show Cause Notice and an assessment order; the appeal to the second authority was filed beyond the statutory limitation but with a 10% pre-deposit. In similar circumstances, remittal to the assessing authority for fresh consideration on merits is an available remedy subject to protective conditions to balance fiscal interest and the assessee's right to adjudication. The conditions applied require an additional cash pre-deposit of 40% of the disputed tax (over and above the 10% already pre-deposited), filing of an additional reply to the Show Cause Notice with supporting documents treating the impugned order as an addendum, and a direction to the assessing authority to pass a fresh final order on merits within a specified time. Conditional interim relief includes automatic vacation of bank attachment if the stipulated deposit is made and no other arrears exist; failure to comply permits resumption of recovery proceedings as if the petition had been dismissed.Conclusion: The matter is remitted for fresh adjudication on merits subject to the petitioner depositing an additional 40% of the disputed tax within 30 days and filing an additional reply; on compliance, the assessing authority shall decide the matter on merits within three months and the bank attachment shall be lifted; non-compliance entitles the assessing authority to proceed with recovery as if the petition were dismissed.