Court Relegates Assessee to Statutory Appeal by Waiving

Court Relegates Assessee to Statutory Appeal by Waiving Limitation Delay and Blocking Immediate Coercive Actions

Issue

Whether a writ petition under Article 226 of the Constitution of India should be entertained against an ex-parte GST assessment order despite the availability of an alternative statutory appeal mechanism under Section 107 of the Act.
Whether the High Court can conditionally bypass the statutory limitation period and direct the Appellate Authority to hear a delayed appeal on its merits.

Facts

The petitioner challenged an adverse GST assessment order by directly invoking the writ jurisdiction of the High Court under Article 226.
The petitioner contended that the impugned assessment was an ex-parte adjudication that caused significant prejudice, and argued that navigating the standard statutory appeal process would cause problematic timeline delays.
The petitioner requested interim protection against tax recovery actions while they prepared to pursue their legal remedies.
The State raised a preliminary objection regarding the maintainability of the writ petition, arguing that a Section 107 statutory appeal represents an equally efficacious alternative remedy.
Recognizing the statutory barrier, the petitioner requested liberty to approach the Appellate Authority alongside a judicial direction to condone the filing delay.

Decision

Held, yes: The writ petition is disposed of by relegating the petitioner to the standard statutory appeal channel, thereby upholding the principle of exhausting alternative remedies.
Held, yes: The petitioner is granted a strict window of two weeks to file the formal statutory appeal against the impugned assessment order.
Held, yes: If the petitioner files the appeal within the stipulated two-week window, the Appellate Authority is directed to adjudicate the matter strictly on its merits, completely waiving any questions regarding limitation delays.
Held, yes: The tax department is prohibited from initiating any coercive recovery actions against the petitioner until the statutory appeal is formally filed within the allowed timeframe.

Key Takeaways

Preference for Statutory Channels: Even during an ex-parte adjudication that a taxpayer claims is prejudicial, High Courts generally prefer not to bypass the structured tax hierarchy if a statutory appeal mechanism can adequately address the merits of the dispute.
Judicial Discretion to Waive Delay: To prevent genuine hardship arising from procedural timelines, High Courts can use their extraordinary jurisdiction to create a safe-passage window, directing appellate bodies to completely disregard limitation caps for a fresh appeal.
Interim Protection Balance: When sending a taxpayer back to an appellate body, courts often grant brief, temporary immunity from coercive recovery actions to ensure that the statutory right of appeal is not rendered hollow by immediate asset attachments.

HIGH COURT OF KARNATAKA

R and S S Facility Services

Deputy Commissioner of Commercial Taxes^*

S. Vishwajith Shetty, J.

WRIT PETITION NO. 14462 OF 2026 (T-RES)

MAY 7, 2026

Thirumalesh M., Adv. for the Petitioner. Mahantesh Shettar, AGA for the Respondent.

ORDER

1. Heard the learned counsel for the petitioner and learned A.G.A. on behalf of the respondent.

2. Petitioner is before this Court under Article 226 of the Constitution of India seeking for the following reliefs –

“(i) Issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Adjudication Order dated 03-12-2025 passed by the Deputy Commissioner of Commercial Taxes (Audit 4.1) Bengaluru, the respondent herein, in No.DCCT (Audit 4.1)/GST-ADJ/2025-26, under Sections 73(9), 50 and 122 of the KGST Act, 2017 and CGST Act, 2017 for the tax periods April 2021 to march 2022, in the case of the petitioner Annexure-A’

(ii) and grant such other relief or reliefs as this Hon’ble Court may deem fit in the circumstances of the case, in the interest of justice.”

3. Learned A.G.A. has raised a preliminary objection with regard to the maintainability of this Writ Petition on the ground that petitioner has an alternative and efficacious remedy of filing an appeal before the competent Authority under Section 107 of the Central Goods and Services Tax Act, 2017.

4. Learned counsel for the petitioner submits that impugned assessment order is an ex parte order, and therefore, there would be delay in filing the appeal. He submits that, under the circumstances, some protection may be given to the petitioner and he may be permitted to file an appeal before the Appellate Authority.

5. Said submission is placed on record.

6. Writ Petition is disposed of permitting the petitioner to file an appropriate appeal before the competent Authority as against the impugned assessment order dated 03.12.2025 at Annexure-A within a period of two weeks from the date of receipt of a copy of this order and if such an appeal is filed, the Appellate Authority shall consider the same on merits without going to the question of delay in filing the appeal. Till the petitioner submits/files his appeal before the Appellate Authority, as aforesaid, respondent shall not take any coercive action.