Late GST Appeal and Non-Reply to SCN: Madras HC Orders Fresh Adjudication on Additional 15% Tax Deposit from ECL [Read Order]

The Madurai Bench of the Madras High Court has set aside three GST (Goods and Services tax) orders and the corresponding appellate rejections, despite the petitioner’s delay in filing appeals and failure to respond to Show Cause Notices (SCNs).

M/s. Sun Scrapers, challenged orders passed by the State Tax Officer on 21 December 2024 and the subsequent rejection of its appeals by the Appellate Commissioner on 30 May 2025. The original assessments for October, November, and December 2023 had been passed on 20 December 2024, modified a day later, and confirmed substantial tax demands.

It was an admitted fact that the petitioner had neither replied to the SCNs preceding these orders nor appeared for the personal hearings.

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In addition to this lapse, the appeals to the GST Appellate Authority were filed 62 days beyond the condonable period prescribed under Section 107 of the Tamil Nadu GST Act, 2017.

The appellate authority dismissed the appeals as time-barred stating binding precedents from the Supreme Court, Singh Enterprises v. CCE and CCE & Customs v. Hongo India (P) Ltd.

However, Justice C. Saravanan noted that the petitioner had already deposited 100% of the disputed tax for October and December 2023 and 10% for November 2023. Thus, considering these payments and the overall circumstances, the Court “came to the rescue of the petitioner” by quashing the impugned orders and remitting the matters to the assessing authority for de novo consideration.

The court directed the petitioner to pay an additional 15% pre-deposit of the disputed tax for November 2023 through the Electronic Cash Ledger within 30 days.

Also directed to file reply to the respective Show Cause Notices that preceded the respective impugned orders by treating the same as addendum to the respective Show Cause Notices together with the above deposit.

After all these compliances by the assessee, the Court directed the officer to pass a fresh order after granting personal hearing. The court also clarified that if the conditions were not met, the respondents would be free to proceed as if the writ petitions had been dismissed outright.

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