M/S.Sun Ark Aluminium Industries Private Limited vs. The Appellate Deputy Commissioner (GST), Madurai And Tirunelveli

Facts

The petitioner, M/s.Sun Ark Aluminium Industries Private Limited, filed a writ petition seeking a direction to the Appellate Deputy Commissioner (GST) to take their appeal on record. The petitioner contended that they were unaware of notices uploaded on the GST common portal, leading to the passing of an assessment order dated 14.02.2025 by the Assistant Commissioner of (ST) without providing an opportunity for a personal hearing. The petitioner discovered the assessment order in June 2025, by which time the limitation period for filing an appeal had expired. The petitioner expressed willingness to pay 20% of the disputed tax amount, comprising 10% statutory pre-deposit and an additional 10% pre-deposit, to enable the filing of the appeal.

Held

The Court held that the petitioner should be allowed to file their appeal, considering the circumstances presented. The reasoning was based on the petitioner's submission that they were unaware of the notices uploaded on the GST common portal, which led to the assessment order being passed without an opportunity for a personal hearing. The Court also took into account the petitioner's willingness to pay 20% of the disputed tax amount as a pre-deposit. The ratio decidendi is that where a taxpayer demonstrates a lack of awareness of proceedings due to portal-based communication and offers a substantial pre-deposit, the appellate authority should consider the appeal on merits without strictly enforcing the limitation period. The Court directed the petitioner to pay 20% of the disputed tax amount (10% statutory pre-deposit and 10% additional pre-deposit) to the respondent. Upon such payment, the 1st respondent (Appellate Authority) was directed to consider the petitioner's appeal on its own merits and in accordance with law, providing sufficient opportunity to the petitioner and not pressing for the limitation.

Key Issues

1. Whether the petitioner should be granted an opportunity to file an appeal against the assessment order dated 14.02.2025, notwithstanding the expiry of the limitation period, given the circumstances of non-receipt of notices and lack of personal hearing? Petitioner's Contention: The petitioner argued that due to the non-receipt of notices uploaded on the GST portal, they were unable to file a reply and consequently, the assessment order was passed without affording them a personal hearing. They further submitted that they came to know about the order only after the limitation period had expired and expressed their willingness to deposit 20% of the disputed tax amount to pursue their appeal. Revenue's Contention: The learned Additional Government Pleader requested the Court to pass any appropriate orders with regard to the filing of the appeal on terms.