Tvl. Deepa Traders Vs Deputy Commissioner (ST) (Madras High Court)
The Madras High Court recently addressed a writ petition filed by Tvl. Deepa Traders challenging a GST demand and the subsequent dismissal of their appeal due to a significant delay. The case, which pits the taxpayer against the Deputy Commissioner (ST), highlights a common point of contention in modern tax administration: the method of communication between authorities and taxpayers. The court’s ruling, which is not a final judgment on the tax liability itself but rather a procedural relief, provides a notable precedent regarding the condonation of delays in GST-related appeals.
Background of the Dispute
Tvl. Deepa Traders, a wholesale business dealing in painting supplies, found itself in a legal bind after the tax authorities initiated a demand for an unspecified amount. The firm’s troubles began when it allegedly failed to respond to a show cause notice issued on December 19, 2022, which pointed out discrepancies in its GST returns. Following the lack of a response, a demand order was issued on February 8, 2023.
According to the petitioner’s counsel, the firm remained unaware of both the show cause notice and the subsequent demand order. This unawareness was attributed to what the petitioner described as “ambiguity in the procedure adopted after the GST enactment.” The firm only became aware of the demand when the authorities began to take coercive action to recover the amount. Upon discovering the demand, Tvl. Deepa Traders promptly filed an appeal with the appellate authority. However, this appeal was filed with a substantial delay of 285 days.
