Mere Delay In Uploading Demand Order On GST Portal Doesn't Make Action Time Barred If Service Via Email Is Proved: Delhi High Court
The Delhi High Court recently observed that usually there is a gap between the passing of a demand order by the GST Department and uploading of Form DRC-07 (summary of order) on the official portal.
A division bench of Justices Prathiba M. Singh and Shail Jain however refused to infer such a gap as rendering the demand order time-barred, in view of the fact that the demand was served upon the assessee in question via email.
The bench observed,
“Prima-facie this Court is of the opinion that e-mail dated 4th February, 2025 is sufficient mode of service…the delay in uploading Form DRC-07 or the order on the portal would not make the order barred by limitation.”
Petitioner claimed that the limitation period for passing a demand order came to an end on 5th February, 2025. It was submitted that though the impugned order was passed on 1st February, 2025, it was uploaded along with the DRC-07 on the GST portal only on 19th February, 2025.
Thus, Petitioner argued that the demand was time barred.
The Standing counsel however informed the Court that an e-mail copy of the order was furnished to the Petitioner on 4th February, 2025.
Though Petitioner claimed that the order was furnished to his CA and not to him, the Court said,
“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…Prima-facie this Court is of the opinion that e-mail dated 4th February, 2025 is sufficient mode of service.”
The Court also noted that in the present case, there were a total of 650 noticees and allegation pertained to fraudulent availment of Input Tax Credit 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,” the Court said and refused to interfere in the matter.
However, noting that the impugned order is an appealable one, it granted liberty to the Petitioner to challenge the same under Section 107 of the CGST Act, along with issue of limitation.
Appearance: Mr. Rajeev Aggarwal and Mr. Shubham Goel, Advs. for Petitioner; Mr. Aakarsh Srivastava, Adv. for Respondent
Case title: Suresh Kumar v. Commissioner CGST Delhi North
Case no.: W.P.(C) 12199/2025