Writ Court May Condone Delay in GST Appeal Subject to Deposit of Assessed Tax

The petitioner challenged an ex parte assessment order dated 22.08.2024, which assessed tax, interest and penalty for FY 2019–20 at a total of ₹15,33,777, and a subsequent order rejecting his rectification application.

The petitioner contended that he had not received a proper opportunity of hearing; the State maintained that the Department had provided opportunities to reply.

During argument, the petitioner offered to deposit the assessed tax liability and sought an opportunity to pursue a remedy against the ex parte order. The State objected that the statutory limitation period had expired.

Whether the petitioner should be permitted to pursue a statutory appeal against the ex parte assessment order despite expiry of the limitation period.

Whether that opportunity should be conditional on deposit of the assessed tax liability.

The Court relied on its power under Article 226 of the Constitution of India to grant relief in order to do complete justice between the parties.

It also referred to the statutory appellate remedy under the GST Act, 2017.

Although the petitioner alleged that the assessment had been made without a proper hearing and the State argued that opportunities to respond had been given, the Court did not resolve that dispute on its merits.

It considered the petitioner’s offer to deposit the assessed tax liability and his request to pursue the statutory remedy, notwithstanding the State’s limitation objection. In the interests of doing complete justice, the Court permitted an appeal and directed that the appellate authority not insist on delay if the appeal was filed within the prescribed one-month period and the deposit condition was met.

If filed within that period, the appeal was to be decided on its merits without insisting on delay, subject to deposit of ₹3,42,883, which the Court specified as the assessed tax liability and a condition precedent to hearing the appeal. The petitioner could raise all available defences, including the challenge to the ex parte order.