Chhattisgarh HC Gives Korba Firm Appeal Route Against ₹8.17-Lakh Ex-Parte GST Demand, Subject To Half-Deposit And Filing Within A Month

The petitioner challenged an ex parte assessment order dated 13 December 2023 imposing a demand of ₹8,17,771.69, and a notice dated 24 March 2026 issued to its supplier seeking recovery from amounts payable to the petitioner.

The petitioner said it learned of the assessment through its supplier and alleged that no show-cause notice or hearing had been provided.

The State maintained that sufficient opportunity had been given, but the petitioner had not replied.

During the hearing, the petitioner offered to deposit 50% of the assessed liability and sought an opportunity to pursue a remedy against the ex parte order; the State objected that the statutory limitation period had expired.

Article 226 of the Constitution empowers the High Court to grant appropriate relief in the circumstances of a case; the Court invoked that power to do “complete justice between the parties”.

The judgment refers to the GST Act, 2017, including Sections 61, 73 and 169 as provisions the petitioner alleged had not been followed, and Section 79(1)(c) as the basis stated for the notice to the supplier.

The Court permitted recourse to a statutory appeal under the GST Act and directed that, if filed within the time specified by the Court and upon the stipulated deposit, the appeal be decided on its merits without insisting on delay.

The Court did not determine the merits of the petitioner’s allegations concerning notice, hearing or the assessment.

Instead, it considered the petitioner’s offer to deposit 50% of the assessed liability—₹4,08,885.84—and found that the circumstances justified Article 226 intervention to enable the petitioner to pursue the statutory appellate remedy.

It addressed the State’s limitation objection by directing that an appeal filed within one month of receipt of the Court’s order be considered without insisting on delay, while making the deposit a condition precedent to hearing the appeal.

On deposit of ₹4,08,885.84, the appellate authority must decide the appeal on its merits without insisting on delay; the petitioner may raise all defences available in law, including challenges relating to the ex parte order.

The Court made no final determination on the assessment’s merits.