GST Order is Common & Single in Nature: Delhi HC allows to File Consolidated Appeal on Single DRC‑07 Covering Multiple Years [Read Order]
The judgment provides relief to assessees facing composite demand orders under GST, while leaving substantive questions on Section 74 invocation to be decided by the appellate authority.
In a recent ruling, the Delhi High Court clarified that a single Form DRC‑07 under GST ( Goods and Services taX ) covering demands across multiple financial years can be challenged through one consolidated appeal. The Court said that since the impugned order was common and single in nature, taxpayers should not be forced into fragmented appeals.
The petitioner, South East Asia Company, challenged the Order‑in‑Original dated 3 February 2025 and the corresponding Form DRC‑07, which raised a consolidated demand of ₹40.82 lakh, including tax, interest, and penalty under IGST, CGST, and SGST.
The petitioner argued that separate DRC‑07 forms should have been issued for each financial year and further contended that the invocation of Section 74 of the CGST Act was improper, since the show cause notice was based only on returns (GSTR‑3B, GSTR‑9) and balance sheet data already available on the GST portal.
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On behalf of the revenue, counsel submitted that the impugned order contained detailed audit paragraphs for each financial year, with specific demands recorded therein. The Form DRC‑07 merely consolidated these amounts into one demand summary.
It was further argued that the question of whether Section 74 was rightly invoked could be raised in appeal and did not warrant interference in writ jurisdiction.
The Division Bench of Justice Prathiba M. Singh and Justice Shail Jain examined the impugned order and noted that while the demand related to multiple years, the order itself was common and single in nature.
Consequently, the Court held that the petitioner was entitled to file one consolidated appeal under Section 107 of the CGST Act against the impugned order.
Importantly, the Court extended the time for pre‑deposit until 20 December 2025 and directed that if the appeal was filed by that date, it would not be dismissed on limitation grounds but adjudicated on merits.
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