‘Appears to Be an Attempt to Evade or Defer Tax Payment’: Madras HC Rejects Challenge to GST Assessment Order [Read Order]

The Madras High Court has dismissed an intra-court appeal challenging a GST ( Goods and Services Tax ) assessment order, observing that the conduct of the assessee indicated an attempt to evade or defer payment of tax.

Justice G. Jayachandran and Justice N. Mala refused to condone a delay of 15 days in filing the appeal and said that the belated challenge appeared to be an effort to evade or postpone tax liability.

An appeal was filed by M/s Andromeda Sales and Distribution Pvt. Ltd., the assessee against an order of a Single Judge of the Madras High Court. The assessee had originally challenged a GST assessment order dated August 4, 2025 on the ground that it had been passed in violation of the principles of natural justice.

According to the assessee, its reply had not been properly considered by the AssessingOfficer while finalising the assessment.

The Single Judge noted that the Show Cause Notice had been issued on June 28, 2023 and that the assessee had failed to cooperate with the assessment proceedings within the prescribed timelines. The assessment order was eventually passed nearly two years later.

The Single Judge allowed the assessee to avail the statutory remedy against the assessment order subject to fulfilment of conditions while declining to interfere with the assessment directly.

The assessee, however, without being satisfied with the relief granted by the Single Judge, preferred an intra-court appeal before the Division Bench.

The appeal itself was filed with a delay of 15 days, for which a petition seeking condonation of delay was also moved. The assessee explained that the delay occurred due to administrative and procedural reasons, including the time required to obtain legal opinion and departmental instructions, but was rejected by the court.

The division bench, after going through the records said that “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.”

Therefore, the Court refused to condone the delay and dismissed the Civil Miscellaneous Petition seeking condonation. The writ appeal was also dismissed at the scrutiny stage itself but permitted to file an appeal before the appropriate appellate authority within 15 days from the date of the judgment.

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