Delhi HC Allows Late GST Appeal After Petitioner Misses Notice, Cites Fairness

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Case Name

M/s Prince Diamond Jewellers Private Limited vs. Goods and Service Tax Officer, Delhi Department of Trade and Taxes, Government of NCT of Delhi & Anr. (High Court of Delhi)

W.P.(C) 4825/2025 & CM APPL. 22148/2025

Date: 17th April 2025

Key Takeaways

• Fair Opportunity: The court prioritized giving the petitioner a fair chance to contest the GST demand, even after the appeal deadline.
• Limitation Period: The usual three-month appeal period (extendable by one month) under Section 107 of the CGST Act was relaxed in this case due to the petitioner’s claim of not receiving the show cause notice (SCN) or the order.
• No Interference with Order: The court did not set aside the GST demand order but allowed the petitioner to appeal it on merits.
• Notifications Not Challenged: Although certain GST notifications extending limitation periods were mentioned, the petitioner did not press their challenge to these in this case.

Issue

Did the petitioner have a fair opportunity to contest the GST demand order, given their claim of not receiving the show cause notice or the order, and should they be allowed to file an appeal after the limitation period?

Facts

• Parties: The petitioner is M/s Prince Diamond Jewellers Private Limited. The respondents are the Goods and Service Tax Officer, Delhi Department of Trade and Taxes, and the Government of NCT of Delhi.
• Dispute: The petitioner was served a GST demand order for Rs. 7,88,611/- (including interest and penalty) on the grounds of excess Input Tax Credit (ITC) claimed.
• Timeline:
• Show Cause Notice (SCN): Dated 24th September 2023.
• Impugned Order: Dated 14th December 2023.
• Petitioner’s Knowledge: Claims to have learned about the SCN and order only on 13th March 2025, during a visit to the tax office for another matter.
• Petitioner’s Claim: Never received the SCN or the order, and thus could not respond or appeal in time. Alleged the SCN was uploaded only on the “Additional Notices Tab” of the portal, but could not provide proof.
• Respondent’s Position: The limitation period for appeal had expired, and the notifications extending time for passing orders were not being challenged in this case.

Arguments

Petitioner

• Did not receive the SCN or the impugned order.
• Only became aware of the order in March 2025.
• Could not file a reply or appeal within the prescribed time.
• Requests permission to file an appeal now, despite the delay.

Respondent

• The limitation period for appeal (three months, extendable by one month under Section 107 of the CGST Act) has expired.
• The petitioner’s challenge to certain GST notifications is not being pressed.
• Argues that the appeal would be time-barred.

Key Legal Precedents & Provisions

• Section 107(1) of the Central Goods and Service Tax Act, 2017 (CGST Act): Provides a three-month period for filing an appeal against an order.
• Section 107(4) of the CGST Act: Allows for an extension of one more month for filing an appeal.
• Notification Nos. 9/2023-State Tax (22nd June 2023), 56/2023-Central Tax (28th December 2023), and 56/2023-State Tax (11th July 2024): These notifications extended the limitation period for passing orders, but their challenge was not pressed in this case.

Judgement

• No Interference with Order: The court did not set aside the GST demand order.
• Permission to Appeal: The petitioner is allowed to file an appeal against the order, provided they make the required pre-deposit under Section 107 of the CGST Act.
• No Dismissal on Limitation: If the appeal is filed within 30 days from the judgment, it should not be dismissed on the ground of limitation and must be decided on merits.
• Petition Disposed: The writ petition and all pending applications were disposed of accordingly.

FAQs

Q1: Why did the court allow a late appeal?

A: The court found that the petitioner did not have a fair chance to contest the order, as they claimed not to have received the SCN or the order. To ensure fairness, the court allowed the appeal despite the delay.

Q2: Did the court cancel the GST demand order?

A: No, the court did not cancel the order. It only allowed the petitioner to file an appeal against it.

Q3: What is the usual time limit for filing a GST appeal?

A: Three months from the date of the order, extendable by one month under Section 107 of the CGST Act.

Q4: What happens next for the petitioner?

A: The petitioner can now file an appeal within 30 days, and the appellate authority must hear it on merits, not dismissing it for being late.

Q5: Were any GST notifications challenged in this case?

A: While some notifications extending limitation periods were mentioned, the petitioner did not press their challenge to these notifications in this case.