Small Business Owner Fails to File Appeal as SCN Uploaded only on GST Portal: Madras HC Grants Opportunity [Read Order]

In a recent ruling Madras High Court observed the difficulty of small business owners in pursuing a statutory appeal after a tax assessment order was deemed served only through upload on the Goods and Services Tax portal, and granted an opportunity to file an appeal against the assessment order.

The case arose from an assessment order dated 26.02.2025, passed by the Deputy State Tax Officer, against the petitioner, Deepalakshmi Coirs, confirming a tax liability of ₹2,58,952. Although a show-cause notice had been issued and replied to, the petitioner failed to file an appeal within the prescribed time.

The order was deemed served under Section 169(1)(D) of the GST Act by uploading it on the common portal.

The petitioner relied on recent High Court precedents, including Nandhini Ginning Factory v. Assistant Commissioner and Coastal Plasto Chem Pvt. Ltd. v. State Tax Officer, to argue that equitable jurisdiction under Article 226 could be invoked to permit an appeal, subject to additional deposit conditions.

On the other hand, the revenue opposed, saying that the petitioner had already suffered the assessment order, which had attained finality. Since the statutory framework clearly provides an appeal remedy with a fixed limitation period and an outer condonable limit, the Court under Article 226 of the Constitution cannot extend that limitation or interfere with the merits of the order, particularly when the petitioner chose not to file an appeal.

After considering the arguments, the High Court acknowledged the binding principle that limitation cannot ordinarily be extended.

Justice Chakravarthy distinguished the present matter into two grounds: that the petitioner was a small timer, and the service of the order was effected only through deemed service on the portal, without other modes of communication.

Observing that the court quoted that, “ I am of the view that this is one of the fit case as an extraordinary matter, such a discretion can be exercised.”

It was also held that the petitioner must file an appeal within one week of receiving the web copy of the order, and the appeal must be accompanied by proof of 25% deposit of the disputed tax.

Accordingly, the writ petition was disposed of.

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