2025 (12) TMI 1450 - HC - GST

GST show-cause notice adjudication order challenge: writ rejected due to s.107 appeal remedy, delay; appeal allowed by 31 Jan 2026.

The dominant issue was maintainability of the writ petition in view of an efficacious statutory appellate remedy under s.107 CGST Act. The HC held that ... Maintainability of petition - availability of alternative remedy - substantial delay in filing the present petition - HELD THAT:- It is noticed that the impugned order arises from the SCN dated 27th May, 2024. The Petitioner had also filed a reply to the SCN. Since, in this case, the reply appears to have been considered by the Adjudicating Authority, this is a case where the Petitioner ought to be relegated to the Appellate remedy. Moreover, there is also a substantial delay from August, 2024, in filing the present petition, which is completely inexplicable. Under these circumstances, the Court is of the opinion that the impugned order in the present petition does not warrant interference of this Court under writ jurisdiction - the present petition is disposed of with liberty granted to the Petitioner to file an appeal under Section 107 of the Central Goods and Service Tax Act, 2017, before the Appellate Authority by 31st January, 2026, along with the requisite pre-deposit. Petition disposed off. 1. ISSUES PRESENTED AND CONSIDERED (i) Whether the Court should exercise writ jurisdiction to interfere with a GST adjudication order where an efficacious statutory appeal is available and the record indicates consideration of the taxpayer's reply. (ii) Whether unexplained delay in approaching the Court weighs against grant of writ relief against the adjudication order. (iii) What directions are appropriate to preserve the taxpayer's right of appeal, including access to the GST portal, and how such appellate adjudication should be conditioned in view of pending higher-court consideration on the validity/effect of extension notifications. 2. ISSUE-WISE DETAILED ANALYSIS A. Writ interference versus relegation to statutory appeal Legal framework (as discussed by the Court): The Court directed the taxpayer to avail the appellate remedy under Section 107 of the Central Goods and Services Tax Act, 2017, with the statutory pre-deposit. Interpretation and reasoning: The Court examined the record and noted that the adjudication order arose from a show cause notice and that a reply had been filed. On these facts, the Court found that the reply appears to have been considered by the adjudicating authority. In such circumstances, the Court held that the matter is one where the taxpayer ought to be relegated to the appellate remedy, rather than seeking writ interference with the adjudication order. Conclusions: The Court declined to interfere with the adjudication order in writ jurisdiction and disposed of the petition with liberty to file a statutory appeal by a specified date, subject to pre-deposit. B. Effect of delay on entitlement to writ relief Interpretation and reasoning: The Court found a substantial delay in approaching the Court after the adjudication order, and held that the delay was completely inexplicable. This was treated as an additional factor supporting non-interference under writ jurisdiction. Conclusions: The delay reinforced the Court's conclusion that the adjudication order did not warrant writ interference and that the proper course was to pursue the statutory appeal. C. Directions to enable appellate remedy; conditioning outcome on pending higher-court determinations regarding extension notifications Legal framework (as discussed by the Court): The Court granted liberty to file an appeal under Section 107 and required the requisite pre-deposit. It also issued a direction relating to access to the GST portal to download documents. Interpretation and reasoning: While noting that challenges to certain extension notifications are pending consideration before the Supreme Court, the Court did not adjudicate the validity of those notifications in this case. Instead, it structured relief so that the taxpayer can pursue the statutory appeal and have it decided on merits. To prevent prejudice, the Court directed that if the appeal is filed by the date fixed by the Court along with pre-deposit, it shall not be dismissed on limitation. The Court further ensured procedural facilitation by directing that GST portal access be made available within one week for downloading necessary documents. Conclusions: The petition was disposed of with: (a) liberty to file a statutory appeal by 31 January 2026 with pre-deposit; (b) a direction that such appeal, if filed within that time, will not be rejected as time-barred and will be decided on merits; (c) a direction to provide portal access within one week to download documents; and (d) a clarification that the appellate decision will remain subject to the Supreme Court's decision in the pending matter concerning the extension notifications and the decision in the pending lead matter concerning parallel State notifications.