Delhi High Court Allows Consolidated Appeal Against GST Demand Order

South East Asia Company permitted to challenge a single GST demand order covering multiple financial years; time for pre-deposit extended.

In a significant ruling by the Delhi High Court, a division bench comprising Justices Prathiba M. Singh and Shail Jain permitted South East Asia Company to file a consolidated appeal against a GST demand order that encompassed multiple financial years. The judgment was delivered on November 18, 2025, in response to a petition filed by the company challenging the legality of a consolidated demand raised through Form DRC-07.

The petitioner, South East Asia Company, contested the Order-in-Original and the accompanying Form DRC-07 dated February 3, 2025, which demanded a total of Rs. 40,82,014/- from the company. The demands were based on various audit findings, including short payment of tax, excess availment of input tax credit, non-payment of tax on other income, and interest on late tax payments, among others.

The company argued that separate Forms DRC-07 should have been issued for different financial years, and questioned the invocation of Section 74 of the Central Goods and Services Tax Act, 2017, since the demands were based on information available in GSTR-3B, GSTR-9, and the balance sheet.

The court, however, observed that the impugned order was common and single in nature, justifying the issuance of a consolidated demand. It ruled that the petitioner could file one consolidated appeal against the impugned order before the Appellate Authority under Section 107 of the CGST Act. Furthermore, the court extended the time for pre-deposit until December 20, 2025, allowing the petitioner to file the appeal without the risk of it being dismissed on the grounds of limitation. The appeal will be adjudicated on its merits.

The decision underscores the court's approach in allowing procedural flexibility in cases involving consolidated tax demands, ensuring that entities are not unduly burdened by procedural technicalities when contesting such orders.

Bottom Line:

GST - A consolidated demand raised through Form DRC-07 for multiple financial years is permissible when the impugned order is common and single in nature. Petitioner allowed to file one consolidated appeal against the impugned order before the Appellate Authority under Section 107 of the CGST Act, with an extension of time for pre-deposit.

Statutory provision(s): Central Goods and Services Tax Act, 2017 Section 107

South East Asia Company v. Superintendent, CGST, (Delhi)(DB) : Law Finder Doc Id # 2815671