Red Rose Garments Vs Deputy Commissioner (CT) (Madras High Court)
The Madras High Court recently condoned a 72-day delay in filing an appeal by Red Rose Garments against an ex-parte assessment order issued by the Deputy Commissioner (CT). The core of the petitioner’s argument was that the impugned order, along with the preceding show cause notices, was only uploaded onto the GST common portal and remained unnoticed by them, preventing a timely response or appeal. Consequently, their appeal, filed on February 9, 2024, was 72 days beyond the prescribed period and was rejected by the tax authorities on limitation grounds. Red Rose Garments had already made a mandatory pre-deposit of 10% of the disputed tax and offered to pay an additional 15% to facilitate a hearing on merits. The High Court acknowledged the petitioner’s explanation, finding the reason for the delay—that the order remained unnoticed due to digital-only uploading without direct intimation—to be “genuine and reasonable.” In the interest of justice, the Court decided to condone the delay, albeit with conditions. The Court directed Red Rose Garments to pay an additional 15% of the disputed tax amount as a pre-condition for the appeal to be restored. Accordingly, the Madras High Court set aside the rejection order of December 27, 2024, and condoned the 72-day delay. The appellate authority was directed to accept the appeal, take it on record, and dispose of it on its merits. The order also stipulated that Red Rose Garments must be given a sufficient opportunity for a hearing, ensuring due process is followed in the reconsideration of the case.
