In a significant ruling impacting hundreds of GST noticees, the Delhi High Court addressed challenges against orders related to alleged fraudulent availment of Input Tax Credit (ITC) totaling Rs. 173 crores. The Court granted relief to the petitioner by condoning delay in refiling and allowed them to challenge the impugned orders through appeal, emphasizing that procedural delays or technical issues in service should not bar substantive rights.
Petitioner’s counsel, Rajeev Aggarwal, highlighted that the first order dated 16th January, 2025 pertained to multiple years. The Court referred to its precedent in Ambika Traders v. Additional Commissioner, DGGSTI, CGST Delhi North, clarifying that SCNs for fraudulent ITC can validly cover “periods” across multiple financial years. The Bench noted that fraudulent availment often spans transactions across different financial years, making consolidated notices legally tenable.
The petitioner also raised limitation concerns regarding the second order dated 1st February, 2025, noting that it was uploaded on 18th February, 2025. The Court observed that the impugned order had been duly communicated via e-mail to either the petitioner or his Chartered Accountant on 4th February, 2025, which constituted valid service under Section 169. The Bench emphasized that delays in uploading Form DRC-07 for 650 noticees, in cases involving substantial ITC claims, do not render the order barred by limitation.
The Court allowed the petitioner to challenge the orders through appeals under Section 107 of the CGST Act. It further directed that such appeals must be filed by 30th September, 2025, with requisite pre-deposit, and clarified that they shall be adjudicated on merits without being dismissed on the ground of limitation.
The writ petition and all pending applications were disposed of.
Case Title: Suresh Kumar vs. Commissioner CGST Delhi North
Case No: W.P.(C) 12199/2025
Coram: Justice Prathiba M. Singh, Justice Shail Jain
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