Bilaspur : The Chhattisgarh High Court has permitted a taxpayer to pursue a statutory appeal against an ex-parte GST assessment Chhattisgarh High Court, GST Appeal, Ex Parte GST Assessment, Korba Steel Castings, GST Act 2017, Justice Narendra Kumar Vyas, GST Tax Liability, Article 226, GST Appeal Limitation, Natural Justice, GST Recovery Notice, Bilaspur High Court, Narendra Kumar Vyas exercised the Court’s jurisdiction under Article 226 of the Constitution of India, granting Korba Steel Castings an opportunity to challenge the assessment before the appellate authority. The Court observed, “Thus, a case for interference by this Court to exercise its power conferred under Article 226 of the Constitution of India to do complete justice between the parties is made out.”
The case arose from an ex-parte assessment order dated December 13, 2023, passed by the State Tax Officer, Korba Circle-II, in Case No. 203 STO/SCRUT./2017-18. Through the assessment order, the tax authorities raised a demand of ₹8,17,771.69, inclusive of interest and penalty, against the petitioner.
The petitioner, Korba Steel Castings Proprietorship Firm, challenged the assessment on the ground that it had been passed without issuing a show-cause notice or providing an effective opportunity of hearing. It contended that the proceedings were contrary to the statutory requirements under Sections 61, 73 and 169 of the GST Act, 2017, and violated the principles of natural justice.
The petitioner further submitted that it came to know about the assessment order only after its supplier, M/s Maruti Aluminum Foil & Sheets, informed it about a recovery notice issued by the tax authorities under Section 79(1)(c) of the GST Act, 2017. Through the notice dated March 24, 2026, the supplier was directed to pay ₹8,17,772 from the amount payable to the petitioner.
Opposing the petition, the State Government argued that the department had provided sufficient opportunities to the taxpayer to submit its response, but the petitioner had failed to do so. The State further contended that the statutory limitation period for filing an appeal had already expired and, therefore, the petitioner’s request could not be entertained.
During the hearing, counsel for the petitioner expressed willingness to deposit 50% of the assessed tax liability and requested an opportunity to pursue the appropriate statutory remedy against the ex-parte assessment order.
Considering this submission, the High Court accepted the petitioner’s proposal and permitted it to file a statutory appeal against the assessment order dated December 13, 2023. The Court directed that the appeal must be filed within one month from the date of receipt of a copy of its order.
The Court further directed the appellate authority to decide the appeal on its merits without insisting on the delay in filing it, as the delay had already been condoned by the High Court, subject to compliance with the deposit condition. Accordingly, the petitioner was required to deposit ₹4,08,885.84, representing 50% of the total assessed liability of ₹8,17,771.69.
Clarifying the condition, the Court held that depositing the specified amount before the authorities was a prerequisite for the department to hear the appeal. It also granted liberty to the petitioner to raise all available legal defences before the appellate authority, including its challenge to the manner in which the ex-parte assessment order had been passed.
The High Court did not set aside the original assessment order or determine the correctness of the tax demand. Instead, it provided the petitioner an opportunity to contest the assessment through the statutory appellate process, subject to the prescribed deposit and filing conditions. The appellate authority was directed to examine the matter independently and decide it in accordance with law.
With these observations and directions, the writ petition was disposed of.
Case Details
Case Title: Korba Steel Castings Proprietorship Firm v. State of Chhattisgarh & Another
Case Number: WPT No. 58 of 2026
Neutral Citation: 2026:CGHC:46070
Date of Order: October 30, 2026
Coram: Hon’ble Justice Narendra Kumar Vyas
Petitioner: Korba Steel Castings Proprietorship Firm, through its Proprietor Surendra Nath Sharma
Respondents: State of Chhattisgarh & Another
Counsel for the Petitioner: Mr. Vikram Sharma, Advocate
Counsel for the State: Ms. Anuradha Jain, Deputy Government Advocate
Relevant Provisions: Article 226 of the Constitution of India; Sections 61, 73, 79(1)(c) and 169 of the GST Act, 2017.
Decision: Writ petition disposed of with liberty to file a statutory appeal within one month, subject to deposit of ₹4,08,885.84.
