Madras HC Condones Delay in Appeal Due to Pending GST Rectification: Orders Fresh Hearing on 20% Pre-Deposit

Madras HC Condones Delay in Appeal Due to Pending GST Rectification: Orders Fresh Hearing on 20% Pre-Deposit

The company, S Ayyavoo Construction, received a show-cause notice on 06.08.2024, against which the company submitted a detailed reply. However, as per the company, the GST officer issued an assessment order dated 26.11.2024, without considering the reply of the company. The petitioner company, after being dissatisfied with this order, filed a rectification application, which was rejected. The company filed an appeal before the Deputy Commissioner (Appeals), but it was also rejected on 17.06.2025, stating that it was filed after the allowed condonable time. To condone the delay in filing the appeal, the company filed a writ petition to the Madras High Court.

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As per the company, the delay in filing the appeal happened due to the pendency of the rectification application. The company also claims that it has made a pre-deposit payment of 10% while filing the appeal and is again willing to pay an extra pre-deposit of 10% of the disputed tax amount.

The High Court noted that the reason behind the delay in appeal filing was genuine, therefore, the court set aside the order dated 17.06.2025 and condoned the delay in filing the appeal with the Deputy Commissioner, but imposed a condition.

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The Court directed the petitioner to make a payment of a pre-deposit of an additional 10% of the disputed tax amount to the Tax Officer and the Deputy Commissioner, CT. After making the payment, the Deputy Commissioner must take the appeal and pass the orders based on the merits and after giving an opportunity of hearing to the petitioner.