2025 (5) TMI 1605 - HC - GST

Seeking to consolidate the appeal before the Appellate Authority under Section 107 - common SCN issued in respect of three financial years - Wrongful availment of Input Tax Credit ( ITC ) - issuance of goodless invoices - HELD THAT - Considering the fact that it was a common SCN a common impugned order has been passed and only Financial Year 2017-18 is mentioned in respect of the impugned order 3rd February 2025 the Petitioner is permitted to file one consolidated appeal before the Appellate Authority under Section 107 of the Central Goods and Service Tax Act 2017. Considering the amount that has been demanded from the Petitioner and the pre-deposit that is to be made the Petitioner is given time till 10th July 2025 to file the said appeal along with the pre-deposit on the tax amount. The ground in respect of Form GST DRC-07 having been improperly issued may also be raised before the Appellate Authority by the Petitioner. Petition is disposed of in these terms.

Summary

The Delhi High Court, in W.P.(C) 6397/2025, addressed a petition by Metalax Industries under Article 226 challenging the Order-in-Original No. 10/CGST/ADC(SKJ)/2024-2025 dated 3rd February 2025 and Form GST DRC-07 dated 5th February 2025 issued by the Additional Commissioner (Adjudication Authority), Central Tax, Delhi West Commissionerate. The impugned order arose from a Show Cause Notice (SCN) dated 31st August 2022 by the Directorate General Goods & Service Tax Intelligence concerning alleged wrongful availment of Input Tax Credit (ITC) via bogus invoices for the period 2017-18 to 2019-20, following a search and arrest in December 2020. A demand of Rs. 6,35,39,210/- was raised.The Court noted that although Form DRC-07 specifies only the 2017-18 tax period, it pertains to all three financial years within the limitation period. The petitioner contended that separate appeals were required for each year; however, the Court permitted a single consolidated appeal under Section 107 of the Central Goods and Service Tax Act, 2017, given the common SCN and impugned order. The petitioner was granted time until 10th July 2025 to file the appeal with the requisite pre-deposit, with the assurance that the appeal "shall be considered and adjudicated on merits and shall not be dismissed on the ground of limitation." The petitioner may also raise the issue of the alleged improper issuance of Form GST DRC-07 before the Appellate Authority. The petition was disposed of accordingly.