Case Law Details
Andromeda Sales And Distribution Pvt. Ltd. Vs State Tax Officer (Madras High Court)
The Madras High Court dismissed an intra-court appeal filed by the assessee against the order of a Single Judge, who had earlier dismissed the writ petition challenging the GST assessment order dated 04.08.2025 on the ground of violation of the principles of natural justice.
The Single Judge had observed that the assessee failed to adhere to the prescribed timelines and did not cooperate with the assessment proceedings initiated through the show cause notice dated 28.06.2023. The assessment order was passed nearly two years after the issuance of the show cause notice. However, considering the assessee’s contention that its reply had not been considered by the Assessing Officer, the Single Judge granted liberty to file a statutory appeal against the assessment order, subject to specified conditions.
The assessee challenged the conditional relief by filing an intra-court appeal with a delay of 15 days, explaining that the delay resulted from administrative and procedural reasons, including obtaining legal opinion and departmental instructions.
The Division Bench found that the appellant had prolonged the proceedings by failing to cooperate with the assessment process and by not availing the statutory appellate remedy under Section 107 of the Central/State Goods and Services Tax Act. The Court observed that filing the delayed intra-court appeal appeared to be an attempt to evade or defer payment of tax. Considering the involvement of State revenue and the unreasonable delay, the Court declined to condone the delay.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Intra-Court Appeal is filed by the assessee, being aggrieved by the order passed by the learned Single Judge dismissing the writ petition. The said writ petition was filed challenging the assessment order dated 04.08.2025 on the ground of violation of natural justice principle.
2. The learned Single Judge, after considering the submissions made by the appellant, had recorded that the assessee failed to adhere to the prescribed timelines to cooperate with the assessment proceedings for the show cause notice dated 28.06.2023 and hence, the final assessment order was passed on 04.08.2025, nearly two years after the issuing of the show cause notice. However, taking note of the appellant’s plea that their reply was not considered by the Assessing Officer, the learned Single Judge thought it fit to permit the assessee to prefer an appeal against the assessment order, subject to compliance with the specific conditions.
3. Not being satisfied with the conditional relief granted, the appellant has preferred the present Writ Appeal with a delay of 15 days.
4. The learned counsel appearing for the petitioner/appellant submitted that the delay of 15 days in filing the writ appeal occurred due to administrative and procedural reasons, specifically the time consumed in getting legal opinion and obtaining necessary departmental instructions.
5. From the records, we find that the conduct of the appellant has been to protract the proceedings by failing to cooperate with the assessment process and also by choosing not to prefer the appeal available under Section 107 of the Central/State Goods and Services Tax Act. By filing this Intra-Court appeal with delay, appears to be an attempt to evade or defer the payment of tax. Since the revenue of the State is involved and an unreasonable delay has already been caused by the appellant, we are not inclined to condone the delay.
6. However, if the appellant wants to avail the liberty granted by the learned Single Judge to workout the remedy before the Appellate Authority, it is permitted to do so within a period of 15 days from today. If such an appeal is filed within the stipulated period, the competent Appellate Authority shall entertain the appeal on merits and pass appropriate orders in accordance with law.
7. Accordingly, this Civil Miscellaneous Petition is dismissed. Consequently, the Writ Appeal is dismissed at the SR stage itself. No costs.
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