Facts of the Case

The petitioner, India Retail Mart through its proprietor Ms. Preeti Bansal, filed a writ petition challenging the adjudication order dated 29.08.2024 passed pursuant to a show cause notice dated 27.05.2024 for the tax period April 2019 to March 2020 by the Sales Tax Officer, Class II/AVATO Ward 95, Zone 8, Delhi. The petitioner also challenged Notification Nos. 09/2023 (Central Tax), 09/2023 (State Tax), 56/2023 (Central Tax), and 56/2023 (State Tax), which extended limitation periods under Section 168A of the CGST Act. The challenge to these notifications formed part of a batch of petitions pending before the Delhi High Court and the Supreme Court.

Issues Involved

Whether the High Court should exercise writ jurisdiction to interfere with a GST adjudication order when a statutory appellate remedy is available, whether the petitioner was denied principles of natural justice, and whether challenges to limitation extension notifications under Section 168A of the CGST Act could be examined at this stage.

Petitioner’s Arguments

The petitioner contended that the reply filed to the show cause notice had not been properly considered by the adjudicating authority and that the petitioner could satisfactorily explain the differences in the demand. It was further submitted that the petitioner was willing to pay the admitted tax amount of ₹13,908. The petitioner also questioned the validity of the notifications extending limitation under Section 168A of the CGST Act.

Respondent’s Arguments

The respondents submitted that the petitioner had filed a reply to the show cause notice, which was duly considered, and that the impugned order was passed thereafter. It was argued that the petitioner had an effective alternate remedy by way of appeal under Section 107 of the CGST Act and that the writ petition suffered from unexplained delay.

Court Order / Findings

The Delhi High Court observed that the impugned order arose from the show cause notice dated 27.05.2024 and that the petitioner had filed a reply which appeared to have been considered by the adjudicating authority. The Court noted that personal hearing had not been availed by the petitioner and that there was a substantial and unexplained delay from August 2024 in approaching the Court. In view of the availability of an efficacious statutory remedy under Section 107 of the CGST Act, the Court held that the impugned order did not warrant interference under writ jurisdiction. The Court also clarified that issues concerning the validity of the notifications issued under Section 168A of the CGST Act were subject to the outcome of proceedings pending before the Supreme Court and related matters before the Delhi High Court.

Important Clarification

The Court clarified that the appellate authority shall adjudicate the appeal on merits without dismissing it on the ground of limitation, provided the appeal is filed by the stipulated date along with the requisite pre-deposit. The Court also directed that access to the GST portal be provided to the petitioner to enable downloading of necessary documents for filing the appeal.

Final Outcome

The writ petition was disposed of with liberty granted to the petitioner to file an appeal under Section 107 of the Central Goods and Services Tax Act, 2017 by 31.01.2026 along with the requisite pre-deposit. It was directed that if the appeal is filed within the stipulated time, it shall be adjudicated on merits and not dismissed on limitation, and the decision of the appellate authority shall remain subject to the final outcome of proceedings pending before the Supreme Court on the validity of the impugned notifications.

Source Link- https://delhihighcourt.nic.in/app/showFileJudgment/75416122025CW190392025_175546.pdf

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