M/S.Eminent Textile Mills Private Limited vs. The Proper Officer / Assistant Commissioner (St)
Original PDF →Facts
The petitioner, M/s. Eminent Textile Mills Private Limited, filed a writ petition challenging an order dated 09.12.2024, issued by the Assistant Commissioner (ST), Rajapalayam II Assessment Circle. This order confirmed a demand proposed in a Show Cause Notice dated 28.02.2024, which was issued for the tax period 2022-23. The petitioner did not file a reply to the Show Cause Notice. The writ petition was filed on 03.08.2026, after the limitation period for filing an appeal under Section 107 of the GST enactments had expired. The disputed tax amount was Rs.1,51,414/-.
Held
The Court, in its discretion, decided to come to the rescue of the petitioner by granting liberty to file an appeal before the Appellate Commissioner. This relief was granted subject to the petitioner depositing 50% of the disputed tax amount of Rs.1,51,414/- within thirty days of receiving a copy of the order. The Appellate Deputy Commissioner (ST) Appeal (GST) was impleaded suo motu as the second respondent to consider the appeal. The Court directed that if the petitioner files the appeal along with the pre-deposit within the stipulated time, the Appellate Authority shall consider and dispose of the appeal on its merits and in accordance with law, without further reference to the limitation period. If the petitioner fails to comply with these conditions, the respondents are at liberty to recover the tax as if the writ petition was dismissed in limine. The Appellate Authority was also directed to provide due notice to the petitioner before passing any order. The issue of whether the original order was without jurisdiction or in violation of statutory provisions was not explicitly decided, as the Court focused on granting conditional liberty to appeal.
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 for filing such an appeal, considering the petitioner's undertaking to deposit 50% of the disputed tax? Petitioner's Contention: The petitioner sought liberty to file an appeal before the Appellate Commissioner. They also provided an undertaking to pay 50% of the disputed tax. Revenue's Contention: The judgment records no specific argument from the revenue regarding the limitation period or the grant of liberty to appeal. The revenue was represented, and notice was taken.
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 dated 09.12.2024 bearing reference in GSTIN 33AACCE9714G1ZS/2022-23, whereby the demand proposed in the Show Cause Notice in Form GST DRC 01 dated 28.02.2024, has been confirmed in absence of the reply from the petitioner.
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 Form GST DRC 07 dated 09.12.2024 was a sum of Rs.1,51,414/- 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 50% 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 50% 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 and WMP(MD)No.17037 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.