Summary: M/s N Circle Exim LLP faces a huge tax bill of over Rs. 40 crores because of problems with their tax filing. The court suggests they challenge the decision, even though their first response wasn't properly signed.
M/s N Circle Exim LLP, represented by N Nikhil, received a large tax bill under various GST laws. The total amount is over Rs. 40 crores, which includes interest and fines. This decision was made by the Joint Commissioner of Customs and Central Excise in Hyderabad on July 1, 2025.
The issue happened because the company's response to the tax assessment wasn't electronically signed or signed by an authorized person. This made their response unacceptable according to Rule 26 of the CGST Rules. The court noted that this mistake caused big problems for the company.
"The assessment has been made only on the basis of evidence available on record with the Assessing Officer."
The court, led by Chief Justice Sri Aparesh Kumar Singh and Justice G.M. Mohiuddin, suggested that M/s N Circle Exim LLP should challenge the decision. They have been given two weeks to do this, along with a required deposit. The court assured that the appeals authority would consider their unsigned reply and any other documents.
The court finished the case without giving an opinion on its details, allowing it to be challenged. All pending requests related to the case were closed.
This case shows how important it is to follow the rules when filing taxes, especially making sure all documents are properly signed.
