M/S.Eminent Textile Mills Private Limited vs. The Assistant Commissioner (St)
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The petitioner, M/s. Eminent Textile Mills Private Limited, filed a writ petition challenging an order dated 04.12.2025, issued by the Assistant Commissioner (ST), Rajapalayam II Assessment Circle. This order was based on a show cause notice dated 16.05.2025, to which the petitioner had replied on 07.07.2025. The impugned order proposed a demand of Rs. 14,12,210/-. The writ petition was filed on 03.08.2026, after the limitation period for filing an appeal under Section 107 of the respective GST enactments had expired. The petitioner sought liberty to file an appeal.
Held
The Court, in its discretion, decided to grant relief to the petitioner by permitting them to file an appeal before the Appellate Deputy Commissioner (ST) Appeal (GST), Rajapalayam. This liberty was granted subject to the condition that the petitioner deposits 25% of the disputed tax amount of Rs. 14,12,210/- within thirty days from the date of receipt of the order. The Appellate Authority was directed to consider and dispose of the appeal on its merits and in accordance with law, preferably within three months of the appeal filing and pre-deposit, without further reference to the limitation period. The Court also stipulated that if the petitioner failed to comply with these conditions, the respondents would be at liberty to recover the tax as if the writ petition was dismissed. The reasoning for this decision appears to be a pragmatic approach to allow the petitioner to pursue their statutory remedy, considering the undertaking to pay a portion of the disputed tax.
Key Issues
1. Whether the Court should grant liberty to the petitioner to file an appeal before the Appellate Commissioner, despite the expiry of the statutory limitation period under Section 107 of the GST enactments, 2017? Petitioner's Contention: The petitioner argued that they would be satisfied if liberty was granted to file an appeal. They made an endorsement undertaking to pay 25% of the disputed tax. The petitioner sought this relief to address the demand of Rs. 14,12,210/- raised in the impugned order. Revenue's Contention: The judgment records no specific arguments from the revenue regarding the petitioner's request for liberty to file an appeal out of time. However, the revenue was represented, and the court considered the petitioner's submission.
Sections Cited
Section 107
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Cause title — parties, addresses and appearances
ORDER Mr.R.Parthiban, learned Special Government Pleader, takes notice for the respondent.
This Writ Petition is taken up for final hearing at the time of admission with the consent of the learned counsel for the petitioner and learned Special Government Pleader for the respondent.
In this Writ Petition, the petitioner has challenged the Impugned Order dated 04.12.2025 bearing reference in ID.No.AUDIT/ 33AACCE9714G1ZS/ 2021-22, whereby the demand proposed in the Show Cause Notice in Form GST DRC 01 dated 16.05.2025, to which the petitioner has filed a reply on 07.07.2025. 4. It is noticed that the limitation for filing an appeal under Section 107 of the respective GST enactments, 2017, against the Impugned Order has already expired.This Writ Petition is filed only on 03.08.2026. 2/6 https://www.mhc.tn.gov.in/judis
At this stage, the learned counsel for the petitioner submits that the total demand that was proposed in the aforesaid impugned order in GST DRC-07 dated 04.12.2025 was a sum of Rs.14,12,210/- towards the respective GST enactments.
The learned counsel for the petitioner further submits that the petitioner will be satisfied if liberty is given to the petitioner to file an appeal. The learned counsel for the petitioner has also made an endorsement to that effect in the Court Bundle, which is extracted hereunder:- “ petitioner undertakes to pay 25% of Tax”
In view of the above, I am inclined to come to the rescue of the petitioner by granting liberty to the petitioner to file an appeal before the Appellate Commissioner subject to the petitioner depositing 25% of the disputed tax within a period of thirty (30) days from the date of receipt of a copy of this order. 3/6 https://www.mhc.tn.gov.in/judis
Since the relief is being granted to the petitioner is to be considered by the Appeallate Deputy Commissioner (ST) Appeal (GST), Rajapalayam, Virudhunagar Region, the said Officer is suo motu impleaded as the second respondent. M/s.P.Sudarkodi Natchiyar, learned Government Advocate (Taxes), takes notice for the second respondent.
Within such time, in case the petitioner files such an appeal before the Appellate Authority/second respondent together with the said deposit, the Appellate Authority shall consider and dispose of the same on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such appeal / pre- deposit without further reference to the limitation.
In case the petitioner fails to comply with any of the above stipulations, the respondents are at liberty to proceed against the petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine today. 4/6 https://www.mhc.tn.gov.in/judis
Needless to state, before passing any such order, the second respondent shall give due notice to the petitioner.
This Writ Petition is disposed of, with the above observations. No costs. Consequently, connected miscellaneous petition is closed. 12.08.2026 CM TO 1.The Assistant Commissioner (ST), Rajapalayam II Assessment Circle, Commercial Tax Building,Rajapalayam.
The Appeallate Deputy Commissioner (ST) Appeal (GST), Rajapalayam, Virudhunagar Region. 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN,J CM ORDER IN WP(MD) No.22873 of 2026 Date : 12/08/2026 6/6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.