2025 (8) TMI 1057 - HC - GST

Email communication suffices under Section 169 CGST; appeal under Section 107 allowed if filed with pre-deposit by 30 Sept 2025

Suresh Kumar Versus Commissioner CGST Delhi North.

HC held that email communication of the impugned order sufficed under Section 169 CGST and delay in uploading Form DRC-07 or posting the order on the ... Issuance of consolidated SCN for multiple years - time limitation for issuance of second order - HELD THAT:- This Court in M/s Raj International v. Additional Commissioner CGST Delhi West & Ors. [2025 (4) TMI 1639 - DELHI HIGH COURT] had noticed that there was no uniform practice that was being followed by the GST Department in service of communications, notices, orders, etc. and accordingly in M/s Raj International the Court held that 'The Department shall make an endeavour to ensure that in terms of Section 169 of the Central Goods and Services Act, 2017, assessees are served through the common GST portal as also through their personal email and mobile number. In addition, the notice may also be sent through speed post so that situations as have arisen in this case, can be avoided in the future.' In the present case, firstly, the order itself is dated 1st February, 2025. Secondly, the e-mail which has been handed over shows that the impugned order has been communicated either to the Petitioner or to his Chartered Accountant. The said email was also served through email on several other Noticees against whom the demands were raised - Form DRC-07 was uploaded on 19th February, 2025. Usually, there is a gap between the passing of the order and the uploading of the Form DRC-07 for each of the parties. In the present case, it is noticed that there are a total of 650 noticees and allegation pertains to fraudulent availment of Input Tax Credit (hereinafter, ‘ITC’) to the tune of Rs. 173 crores. When there are 650 noticees, obviously, the generation of DRC-07 for each of the noticees could take some reasonable time so long as the order has been communicated through e-mail or post or other modes as contained in Section 169 of the CGST Act. Accordingly, the delay in uploading Form DRC-07 or the order on the portal would not make the order barred by limitation - Prima-facie this Court is of the opinion that e-mail dated 4th February, 2025 is sufficient mode of service. However, the impugned order being an appealable order, the Petitioner is permitted to challenge the same by an appeal under Section 107 of the CGST Act. In the said appeal, the Petitioner is also permitted to raise the issue of limitation. Let the appeals challenging the impugned orders be filed by 30th September, 2025 along with the requisite pre-deposit. If the same are filed by the said date, they shall not be dismissed on the ground of limitation and shall be adjudicated on merits - petition disposed off. ISSUES PRESENTED AND CONSIDERED 1. Whether a consolidated show-cause notice or adjudication order relating to alleged wrongful or fraudulent availment/utilisation of input tax credit (ITC) can validly relate to periods spanning multiple financial years under the CGST Act. 2. Whether service of an adjudication order by e-mail (to the assessee's or the assessee's representative's e-mail address) and subsequent uploading of Form DRC-07 on the GST portal constitutes valid service under Section 169 of the CGST Act for purposes of limitation and other consequences. 3. Whether delay in refiling or delay in uploading Form DRC-07 after passing of an order renders the order time-barred, and what relief (if any) is appropriate where mode and date of communication are disputed. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Validity of consolidated notices/orders across multiple financial years Legal framework: Sections 73 and 74 (particularly sub-sections (3), (4) and (10)) of the CGST Act; definition of 'tax period' in Section 2(106). The statute uses both 'for any period' / 'for such periods' (in ss.73(3), 73(4), 74(3), 74(4)) and 'financial year' (in ss.73(10), 74(10)). Precedent treatment: The Court referred to and followed the decision in Ambika Traders (as cited in the judgment), which interpreted the statutory language to permit notices/statements covering periods that may extend beyond a single financial year. Interpretation and reasoning: The Court reasoned that the use of the words 'period'/'periods' in ss.73(3),(4) and 74(3),(4) contemplates a notice for more than one financial year, consistent with the commercial and evidentiary reality that fraudulent or bogus ITC schemes often span transactions across multiple years. The distinction in terminology between provisions invoking 'period' and those limiting orders to within specified years (ss.73(10), 74(10)) demonstrates legislative consciousness and allows investigatory linkage of transactions across years where grounds are the same. Ratio vs. Obiter: Ratio - It is a substantive interpretative holding that consolidated notices/statements for multiple periods are permissible under the CGST Act when the grounds relied upon are the same; the statutory language and commercial realities justify such consolidation. This follows and applies the reasoning of the cited authority. Conclusion: A consolidated show-cause notice or statement covering multiple financial years is permissible under the CGST Act where the statutory language ('for any period' / 'for such periods') and the necessity of connecting transactions across years to establish fraudulent availment of ITC justify such treatment. The petitioner's challenge to the first order on the ground that it covers multiple years is covered by this principle and may be pursued by appeal. Issue 2 - Validity of service by e-mail and effect on limitation Legal framework: Section 169 of the CGST Act prescribes modes of service (including registered post, registered e-mail ID, etc.) and contemplates service through the common GST portal and other modes where practicable. Precedent treatment: The Court relied on its earlier decision in M/s Raj International (referred to in the judgment) which observed an absence of uniform departmental practice and directed service through the common GST portal, personal email, mobile number and, in addition, speed post. The Court also noted a Madras High Court decision interpreting Section 169 to prefer in-person, registered post or registered e-mail, and, if impracticable, publication on portal/newspaper. Interpretation and reasoning: The Court examined the factual matrix - the impugned order dated 1st February, 2025; an e-mail dated 4th February, 2025 sent by the Department to an email address linked to the petitioner's chartered accountant; and the upload of Form DRC-07 on 19th February, 2025. The Court observed that where an order is communicated by a departmental e-mail to the assessee or their representative, such e-mail prima facie suffices as a mode of service under Section 169, subject to challenge on facts (e.g., whether the email was the registered e-mail of the assessee or merely of the representative). Ratio vs. Obiter: Ratio - Prima facie recognition that departmental e-mail communication to an assessee (or its representative) can constitute valid service under Section 169 for triggering limitation, with the caveat that the adequacy of the specific e-mail address for service is a factual question. Obiter - Observations on best practice (portal + personal email + mobile + speed post) stem from earlier directions and function as procedural guidance rather than binding rule in the instant case. Conclusion: The e-mail dated 4th February, 2025 was prima facie a sufficient mode of service. However, adequacy of that service (registered vs. representative's email) remains open to challenge and is properly raised in appeal; the petitioner is permitted to contest limitation in the appellate forum. Issue 3 - Effect of delay in uploading Form DRC-07 and condonation of delay in refiling Legal framework: Limitation for issuance of adjudication orders under ss.73(10)/74(10) measured from due date for furnishing annual return; practical operation of departmental processes (generation/uploading of Form DRC-07) and service under Section 169. Precedent treatment: The Court relied upon its prior directions in M/s Raj International that advocated uniformity and redundancy in modes of service to prevent disputes; no contrary binding precedent was applied to hold uploading delays fatal to limitation where communication otherwise occurred. Interpretation and reasoning: The Court noted operational realities - a large number of noticees (650) and the voluminous nature of demand - and recognized that administrative gaps between passing an order and uploading individual DRC-07 forms can be reasonable if the order has been communicated by permissible modes. Where an order has been communicated (here by departmental e-mail), subsequent delay in portal upload does not, by itself, render the order time-barred. Separately, the Court condoned delay in refiling where reasons were stated in the application (CM application granted), indicating judicial willingness to relieve procedural non-compliance where just exceptions are shown. Ratio vs. Obiter: Ratio - Delay in uploading Form DRC-07 does not automatically make an adjudication order barred by limitation when the order has been validly communicated earlier through permitted modes; administrative delay in generating individual forms can be justified in mass-notice situations. Obiter - Remarks on the number of noticees and administrative timelines illustrate practical context rather than fixed legal standards. Conclusion: The mere gap between the date of the order and the date of uploading Form DRC-07 does not invalidate the order if valid communication under Section 169 occurred earlier. Where communication is disputed, the remedy is to raise limitation in appeal; the Court permitted appeals to be filed with the issue of limitation to be decided on merits and directed time-bound filing with prescribed pre-deposit without dismissal on limitation grounds if filed by the specified date. Cross-References and Relief Directives 1. The Court applied the interpretation in Ambika Traders regarding consolidation of periods (Issue 1) and aligned procedural guidance from M/s Raj International on modes of service (Issue 2) to the facts. 2. Where service by e-mail is shown, uploading delays (Form DRC-07) do not automatically defeat limitation; disputed adequacy of service remains a live issue for appeal (Issue 3). 3. The petitioner was permitted to prefer an appeal under Section 107 of the CGST Act against the impugned adjudication order and to raise limitation as a ground in that appeal; appeals filed by the specified date with requisite pre-deposit will not be dismissed on limitation grounds and shall be adjudicated on merits.