Delhi High Court Permits Purshottam Ray to File GST Appeal Despite Delay
Court Accepts Petitioner’s Explanation for Late Knowledge of Impugned Order, Directs Registry to Prevent Conflicting Rulings
In a recent judgment, the Delhi High Court has allowed Purshottam Ray, proprietor of M/s. PR Traders, to file an appeal against a GST demand order despite missing the statutory deadline. The decision was issued by a bench comprising Justices Prathiba M. Singh and Shail Jain. The court accepted Ray's explanation that he only acquired knowledge of the impugned order in August 2025, after his GST registration had been canceled and no direct intimation of the order was provided.
The case arose when Ray challenged an Order-in-Original dated January 31, 2025, passed by the Joint Commissioner, Adjudication CGST, Delhi North, which raised a demand of over Rs. 550 crores against various firms, including Ray's. The Department conducted an investigation against 286 entities, including Ray's firm, for alleged GST evasion involving bogus invoices issued by M/s. Montage Enterprises.
Ray argued that he was not aware of the impugned order as it was uploaded solely on the GST portal after his registration had been canceled. He claimed he was informed of the order only when certain buyers received notices from GST authorities, prompting him to check the GST portal.
Acknowledging Ray's bona fide explanation for the delay, the court permitted him to file an appeal by November 15, 2025, along with any requisite pre-deposit. The appeal will be adjudicated on its merits, without dismissal on limitation grounds.
In addressing procedural concerns, the court highlighted the necessity of avoiding conflicting rulings on similar impugned orders affecting multiple parties. The registry has been directed to add a field recording the DIN number and date of impugned orders when writ petitions are filed. This measure aims to assist the court and litigants by providing crucial data on prior related cases, akin to practices in criminal matters arising from the same FIR.
The judgment emphasizes the importance of adhering to principles of natural justice while ensuring procedural consistency in handling tax-related disputes.
Bottom Line:
GST Law - Principles of natural justice - SCN was within the knowledge of the petitioner, but the petitioner failed to file a reply and check the GST portal - Petitioner's explanation taken as bona fide, allowing an appeal to be filed by 15th November, 2025 - Registry directed to add a 'FIELD' related to impugned orders for avoiding conflicting rulings.
Statutory provision(s): Goods and Services Tax Act, 2017 Section 107
Purshottam Ray v. Principal Commissioner of CGST, (Delhi)(DB) : Law Finder Doc Id # 2793076
