MD Signs Vs Deputy State Tax Officer (Madras High Court)
The writ petition before the Madras High Court was disposed of at the admission stage with the consent of both parties. The petitioner challenged an order dated 19 February 2025 which confirmed a tax demand proposed in a Show Cause Notice (DRC-01) dated 25 November 2024 for the tax period 2020–2021. The confirmation of the demand was made on the ground that no reply had been filed by the petitioner to the Show Cause Notice. The petitioner approached the Court after depositing 10% of the disputed tax on 5 November 2025.
During the hearing, the learned Special Government Pleader for the respondent stated that he was unable to confirm whether the amount deposited on 5 November 2025 had been adjusted towards the demand confirmed under the impugned order. The Court noted that the statutory time limit for filing an appeal under Section 107 of the GST enactments, 2017 against the impugned order had already expired, and that the writ petition had been filed only on 8 December 2025.
Notwithstanding the expiry of the appellate limitation period, the Court followed a consistent approach adopted in similar matters. It remitted the case back to the respondent authority for fresh consideration on merits, subject to conditions. The petitioner was directed to deposit 25% of the disputed tax within thirty days from the date of receipt of a copy of the Court’s order. The Court clarified that if the amount deposited on 5 November 2025 had already been set off against the confirmed demand, the petitioner would be required to deposit only the remaining 15%.
