Shami Industries Vs Deputy State Tax Office (Madras High Court)
Madras High Court has granted relief to Shami Industries, permitting the company to file an appeal against an assessment order despite a marginal delay. The petitioner had challenged an assessment order dated February 26, 2025, which was issued for the tax period 2020-2021. The statutory period for filing an appeal under Section 107 of the GST enactments had expired, including the 30-day condonable period.
Appearing before the High Court, the petitioner sought to challenge the assessment order. While no specific judicial precedents were cited in the judgment, the court exercised its discretionary powers to provide the assessee with an opportunity to be heard. The court noted the delay in filing the appeal was only marginal.
To ensure justice, the High Court allowed Shami Industries to proceed with the appeal, subject to a key condition. The company is required to deposit 25% of the disputed tax amount, either in cash or through its electronic cash ledger, within a period of 15 days from the date of the order. If this condition is met and the appeal is filed within the specified timeframe, the Appellate Authority is directed to consider and dispose of the matter on its merits. The court also clarified that the petitioner must be granted a personal hearing before any final order is passed. The writ petition was disposed of with this directive, emphasizing that such matters should be decided on substantive grounds rather than procedural technicalities.
