The Madras High Court addressed a case involving Rajkumar Dyeing & Printing Works Pvt. Ltd., where the petitioner challenged an appellate order that rejected its GST appeal due to limitation issues under Section 107 of the GST Act. The petitioner had previously submitted a reply to the show cause notice, but an assessment order was still passed, leading to recovery actions, including the attachment of bank accounts.
The petitioner sought relief from the High Court, requesting a merit-based adjudication and protection against coercive recovery measures. The court considered whether it could intervene in the rejection of a GST appeal based on limitation grounds and if it could remand the matter for reconsideration with specific conditions.
Read More: GST – Calcutta High Court: Appellate Authority cannot enhance tax liability without notice; Enhancement beyond show cause violates Section 107(11) [Order attached]
The High Court decided to set aside the appellate order that dismissed the appeal on limitation grounds. It treated the assessment order as an addendum to the show cause notice and sent it back for a fresh review on its merits. The court required the petitioner to make an additional deposit of the disputed tax beyond the statutory pre-deposit made earlier. It also instructed the assessing authority to provide a personal hearing and issue a reasoned order within a specified timeframe. Furthermore, the court ordered the suspension of all coercive recovery actions, including the attachment of bank accounts, once the petitioner complied with the deposit condition.
Case Title: Rajkumar Dyeing & Printing Works Pvt. Ltd. v. Deputy Commissioner of State Tax & Ors.
Order Date: 03 January 2026
Facts –
- The petitioner challenged an appellate order rejecting its GST appeal solely on the ground of limitation under Section 107 of the GST Act.
- The assessment order had been passed despite the petitioner having submitted a reply to the show cause notice.
- Recovery proceedings, including attachment of bank accounts, were initiated pursuant to the assessment.
- The petitioner approached the High Court seeking adjudication on merits and protection from coercive recovery.
Issue –
- Whether the High Court can interfere with rejection of a GST appeal on limitation and remit the matter for fresh consideration subject to appropriate conditions?
Order –
- The High Court set aside the appellate order rejecting the appeal on limitation.
- The assessment order was treated as an addendum to the show cause notice and remanded for fresh consideration on merits.
- The petitioner was directed to deposit an additional percentage of the disputed tax, over and above the statutory pre-deposit already made.
- The assessing authority was directed to grant personal hearing and pass a reasoned order within a prescribed time.
- Coercive recovery proceedings, including bank attachment, were directed to be lifted upon compliance with the deposit condition.
