Facts of the Case

Tvl. Rajapalayam Cement & Chemicals Ltd. challenged an assessment order in Form GST DRC-07 dated 8 October 2024 for the assessment year 2021-22, contending that it had suffered an ex-parte order at the hands of the respondent and that the statutory period for filing an appeal under Section 107 of the GST Act had already expired. The petitioner approached the Madurai Bench of the Madras High Court seeking permission to file a belated appeal against the ex-parte assessment.

Issues Involved

  1. Whether the High Court can permit a GST appeal to be entertained beyond the limitation period prescribed under Section 107 where the assessment order was passed ex-parte.
  2. What conditions, if any, should be imposed for admitting such a belated appeal, given the delay involved.

Petitioner's Arguments

  • The petitioner suffered an ex-parte assessment order without a proper opportunity to contest the demand, and should therefore be permitted to challenge it on merits through the statutory appellate remedy despite the expiry of the appeal period.

Respondent's Arguments

  • No specific opposition beyond the fact of the appeal period having already expired was placed on record.

Court Order / Findings

  • The Court permitted the petitioner to file an appeal within 30 days of receipt of the order, to be entertained without reference to limitation.
  • Considering the long delay involved, it directed that instead of the ordinary 10% mandatory pre-deposit, the petitioner would be required to pay 20% of the disputed tax amount as pre-deposit to avail this relief.
  • It was made explicit that if the petitioner failed to remit the enhanced pre-deposit and/or file the appeal within the stipulated four weeks, the benefit of the order would stand automatically recalled, with no separate order required.

Important Clarification

  • Where a taxpayer seeks condonation of a long delay in filing a GST appeal against an ex-parte order, courts may grant relief but calibrate the statutory 10% pre-deposit upward — here to 20% — as the price of that indulgence, rather than simply waiving limitation outright.
  • Such conditional relief is self-executing: non-compliance with either the deposit or the filing deadline automatically nullifies the benefit without need for further proceedings.

Sections Involved

  • Section 107, GST Act – governs the limitation period and mandatory pre-deposit (ordinarily 10% of disputed tax) for filing a first appeal against an assessment order.
  • Form GST DRC-07 – summary of the demand order under challenge.

Decision – In Favour of

The decision is in favour of the assessee, though conditioned on payment of an enhanced 20% pre-deposit within a strict timeline, making it a qualified rather than unconditional win.

Case Details

Court: Madras High Court, Madurai Bench. Case No.: W.P.(MD) No. 33171 of 2025 & W.M.P.(MD) Nos. 26185 & 26187 of 2025. Coram: Hon'ble Mr. Justice G.R. Swaminathan. Date of Order: 20 November 2025.

Link to Download the Order

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