2026 (3) TMI 1197 - HC - GST

Limitation period and delay: remand granted subject to pre-deposit, filing of reply, and time bound fresh adjudication.

Challenge to a GST adjudication order raised delay and expiry of the statutory appeal period; the court treated limitation and non-compliance with show ... Non-compliance with the show cause notice - Neither filed any reply nor appeared for the personal hearings fixed - limitation period - statutory period for filing an appeal under Section 107 of the GST enactments - Seeking for fresh adjudication subject to conditions including a pre-deposit by the petitioner, in view of delay and expired statutory appeal period. Remand for de novo adjudication on pre-deposit conditions - HELD THAT: - 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. The present Writ Petition has been filed only on 10.03.2026. At this stage, Petitioner submits that the Petitioner is willing to pre-deposit 50% of the disputed tax as a condition for de novo adjudication. Under similar circumstances, Orders have been quashed and cases have been remitted back to pass a fresh order on terms subject to such Assessee depositing 25% to 100% of the disputed tax depending upon the length of delay in approaching the Court. I do not find any reason to take a different view in this case. Therefore, to balance the interest of both parties viz., the Assessee and the Revenue, the case is remitted back to the Respondent to pass a fresh order subject to the Petitioner depositing 50% of the disputed tax in cash 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. Within such time, the Petitioner shall also file a reply to the Show Cause Notice in GST DRC-01 dated 28.05.2024 (digitally signed on 27.05.2024) together with requisite documents to substantiate the case by treating the impugned Order dated 22.08.2024 as an addendum to the Show Cause Notice dated 28.05.2024 (digitally signed on 27.05.2024). It is made clear that bank attachment shall be lifted subject to the deposit of 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. 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. Final Conclusion: The writ petition is disposed of by remitting the matter to the respondent for fresh adjudication on terms: the petitioner must deposit 50% of the disputed tax and file a reply and documents; the respondent shall thereupon decide the matter on merits and the bank attachment will be vacated subject to compliance, failing which the respondent may recover the tax as if the petition were dismissed. Issues: Whether the impugned GST order dated 22.08.2024 should be quashed and remitted for fresh adjudication subject to conditions including a pre-deposit by the petitioner, in view of delay and expired statutory appeal period.Analysis: The Court examined the factual timeline showing non-compliance by the petitioner with the show cause notice and missed personal hearings, noted that the statutory period for filing an appeal under Section 107 of the GST enactments, 2017 has expired, and considered the petitioner's offer to pre-deposit 50% of the disputed tax to enable de novo adjudication. The Court referred to precedents and practice where matters delayed in approaching the Court are remitted for fresh adjudication on terms requiring deposit of a part of the disputed tax, with the quantum linked to length of delay, to balance revenue and assessee interests. The Court imposed time-bound conditions for deposit, filing of reply to the show cause notice treating the impugned order as an addendum, and directed final adjudication within a specified period, while providing for lifting of bank attachment upon compliance.Conclusion: The Court quashed the impugned order and remitted the matter to the respondent for fresh adjudication on merits, subject to the petitioner depositing 50% of the disputed tax within thirty days and filing a reply to the show cause notice; bank attachment to be vacated on compliance; failure to comply permits the respondent to proceed as if the petition were dismissed.