Facts of the Case

M/s.Renuka Marketing, a proprietorship represented by Sureshkumar Rawal and registered under GSTIN 33COZPS1646R1ZR, was assessed by the Superintendent of CGST & Central Excise, City Range, Madurai I Division, for the tax period 2020-21. An ex-parte Order-in-Original bearing DIN-20250259XO000052095D was passed on 21.02.2025, followed by a summary order dated 24.02.2025, without the petitioner having a proper opportunity to contest the proceedings. By the time the assessee approached the Madras High Court under Article 226 seeking certiorarified mandamus, the statutory limitation for filing a departmental appeal under the Central Goods and Services Tax Act, 2017 had already expired, leaving the petitioner without an ordinary remedy against the assessment.

Issues Involved

  1. Whether an assessee who suffered an ex-parte GST assessment order, and whose appeal period has expired, can be granted a fresh window to file a belated statutory appeal.
  2. Whether such relief can be conditioned upon payment of a pre-deposit and subject to automatic recall on default.
  3. Whether interim bank attachment consequent to the assessment should be lifted once the appeal is validly presented.

Petitioner's Arguments

  • The assessment order dated 21.02.2025 was passed ex-parte without adequate opportunity of hearing being availed by the petitioner.
  • Since the normal appeal period under Section 107 of the CGST Act had lapsed by the time the writ was filed, the petitioner would be rendered remediless unless the Court intervened.
  • The bank account attachment consequent to the summary order was causing continuing hardship and needed to be lifted once the appeal process was set in motion.

Respondent's Arguments

  • The Superintendent of CGST & Central Excise, City Range, Madurai I Division, did not seriously contest the plea for a further opportunity, leaving the matter to the Court's discretion on terms.

Court Order / Findings

  • The Court noted that the petitioner had suffered an ex-parte order and that the appeal period had already expired, leaving no ordinary remedy available.
  • Following the settled practice of Madras High Court in similar ex-parte GST assessment matters, the Court permitted the petitioner to file a statutory appeal within thirty days of receipt of the order, to be entertained without reference to limitation.
  • The petitioner was directed to pay 10% of the disputed tax amount as pre-deposit, only upon which the appeal would be uploaded and considered; the bank attachment would stand lifted immediately upon such compliance, but the benefit of the order would stand automatically recalled if the deposit or appeal was not made within the stipulated thirty days.

Important Clarification

  • Courts continue to extend a conditional, time-bound opportunity to appeal against ex-parte GST orders even after normal limitation has expired, balancing revenue interest through a mandatory pre-deposit.
  • Bank account attachments effected pursuant to summary recovery orders are ordinarily lifted once the assessee complies with the pre-deposit condition and files the appeal.
  • Such relief is conditional and self-defeating on non-compliance — the benefit is automatically recalled if the assessee fails to deposit or appeal within the time granted.

Sections Involved

  • Central Goods and Services Tax Act, 2017 – governs assessment, appeal and recovery of central GST dues; Section 107 prescribes the appeal mechanism and pre-deposit requirement invoked here.
  • Article 226 of the Constitution of India – invoked for issuance of a writ of certiorarified mandamus against the assessment order.

Decision – In Favour of

The writ petition was disposed of in favour of the assessee to the extent of granting a conditional, time-bound opportunity to file a belated appeal against the ex-parte assessment; the underlying tax dispute on merits remains open for the appellate authority to decide.

Case Details

Court: Madurai Bench of the Madras High Court
Case No.: W.P(MD)No.34223 of 2025 with W.M.P(MD)Nos.27049 & 27051 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 27.11.2025

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