Delhi HC Grants Limitation Relief to File Statutory Appeal Despite GST Adjudication Order Passed After Considering Taxpayer’s Reply [Read Order]

In a recent ruling, the Delhi High Court granted limitation relief to a GST (Goods and Services Tax) taxpayer to file a statutory appeal, even though the adjudication order had been passed after considering the taxpayer’s reply.

Neelgiri Machinery, through its proprietor Mrs. Asha Devi, filed a writ petition challenging a show cause notice dated 11 December 2023 and the adjudication order dated 30 April 2024 passed for the tax period April 2018 to March 2019. The petitioner also challenged the validity of certain GST notifications issued under Section 168A of the Central Goods and Services Tax Act, 2017, which extended the time limits for adjudication.

The petitioner’s counsel argued that the proceedings were affected by serious legal uncertainty, as the validity of the limitation-extension notifications was under challenge before several High Courts and the Supreme Court. They submitted that conflicting views had been taken by different High Courts and that the issue was pending before the Supreme Court for final consideration in M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors (S.L.P. No. 4240/2025).

The department’s counsel submitted that the petitioner had filed a reply to the show cause notice and that the adjudication order was passed after considering the reply. On this basis, they argued that the order was not ex parte and that the petitioner should be relegated to the statutory appellate remedy.

The Division Bench of Justice Prathiba M.Singh and Justice Shail Jain observed that the validity of the impugned notifications was already pending before the Supreme Court and that, in view of judicial discipline, it would not be appropriate for the High Court to decide the issue in the present case.

The court also observed that the petitioner had filed a reply to the show cause notice and that the adjudication order had been passed after taking the reply into account.

The court explained that in such circumstances, the proper course was to permit the petitioner to avail the statutory remedy of appeal under Section 107 of the CGST Act. At the same time, the court pointed out that the ongoing legal uncertainty regarding limitation extensions under Section 168A had affected taxpayers across the country, and denying the petitioner the right to appeal on the ground of limitation would be unjust.

Taking these factors into account, the court permitted the petitioner to file a statutory appeal within the time granted by the court and directed that the appeal should not be treated as barred by limitation. The court also observed that the appeal would be decided on merits by the appellate authority and that the decision would remain subject to the final outcome of the proceedings pending before the Supreme Court.

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