Appeal permitted beyond limitation as only penalty on admitted tax was under challenge: HC { Tvl. Nagaraj Sellappan vs. State Tax Officer, Namakkal [2025] 180 taxmann.com 341 (Madras)}
Facts:
- Petitioner did not reply to SCN under Section 74 and an ex-parte order dated 20.03.2023 confirmed tax, interest and penalty.
- Petitioner later made voluntary payments and filed a rectification application, after which dues were reduced on 14.08.2023.
- Petitioner sought permission to file a statutory appeal against penalty, though the appeal period had already expired
Issue:
Whether the petitioner could be allowed to file a delayed appeal challenging penalty on belated admitted tax, despite not replying to SCN and the limitation period having lapsed.
Held
- Only dispute was penalty for belated payment of admitted SGST/CGST.
- Petitioner permitted to file appeal within 30 days, after depositing 25% of disputed tax + interest.
- Appeal to be decided on merits, without reference to limitation.
