2025 (6) TMI 516 - HC - GST

Challenge to common SCN - Petitioner submits that the SCN was issued in respect of three financial years and hence the Petitioner would be compelled to file three different appeals qua the impugned order - HELD THAT - This Court is of the opinion that since a common SCN was issued upon the Petitioners and 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 shall be 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 Petitioners and the pre-deposit that is to be made the Petitioners are given time till 15th July 2025 to file the said appeal along with the pre-deposit on the tax amount - If the appeal is filed by 15th July 2025 the same shall be considered and adjudicated on merits and shall not be dismissed on the ground of limitation.

Summary

The Delhi High Court, through Justices Prathiba M. Singh and Rajneesh Kumar Gupta, addressed W.P.(C) 7626/2025 and W.P.(C) 7676/2025 filed by Delhi Foils (a partnership) and Abinox Industries (a proprietorship) challenging a common show cause notice (SCN) dated 31 August 2022 and the impugned final order dated 3 February 2025 issued by the Directorate General Goods & Service Tax Intelligence, Gurugram Zonal Unit. The SCN alleged wrongful availment of Input Tax Credit (ITC) via good-less invoices following a search and arrest in December 2020, covering the tax periods 2017-18 to 2019-20.Key legal reasoning includes the Court's recognition that although the impugned order and Form DRC-07 reference only the financial year 2017-18, the proceedings relate to all three years within the limitation period. The Court held that since a common SCN and order were issued, the Petitioners are entitled to file a single consolidated appeal under Section 107 of the Central Goods and Service Tax Act, 2017, rather than multiple appeals for each year. The Petitioners were granted time until 15 July 2025 to file the appeal with the requisite pre-deposit, with the Court directing that the appeal "shall be considered and adjudicated on merits and shall not be dismissed on the ground of limitation." The Petitioners may also raise the issue of the alleged improper issuance of Form GST DRC-07 before the Appellate Authority.The petitions and pending applications were disposed of accordingly.