Sas Hotels And Enterprises Limited Vs Deputy Commercial Tax Officer (Madras High Court)
Madras High Court has intervened in a tax dispute involving Sas Hotels And Enterprises Limited, setting aside an order that rejected the company’s appeal due to a 58-day delay. The court, acknowledging the petitioner’s reasons for the delay, has allowed the appeal to be taken on record, subject to an additional pre-deposit.
The writ petition challenged three orders: an assessment order dated April 27, 2024; a rectification rejection order dated October 21, 2024; and an appeal rejection order dated April 25, 2025, passed by the Deputy Commercial Tax Officer.
The petitioner’s counsel stated that a show cause notice was issued on December 28, 2023, to which a detailed reply was submitted on March 28, 2024. However, an assessment order was passed without considering this reply. The petitioner subsequently filed a rectification application, which was dismissed. Following this, an appeal was filed, but it was delayed by 58 days due to the pendency of the rectification application. The appellate authority rejected the appeal solely on grounds of limitation, as the delay exceeded the condonable period.
Sas Hotels had already paid a 10% statutory pre-deposit with their original appeal and offered to pay an additional 5% of the disputed tax amount.
